Thursday 27 October 2016

Stocks up as oil production deal looms

Sean Duffy

Published 11/10/2016 | 02:30

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Stocks across much of Europe were up yesterday-boosted by a rise in oil prices.

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The price of a barrel of crude oil rose by 3.5pc after Russian president Vladimir Putin announced the country is ready to cut output along with a number of other major oil producers.

He made his remarks at the World Energy Congress in Istanbul, where an agreement among Opec nations and oil producers to curb production is expected later this week. In a further spur to investor sentiment, Saudi Arabia's oil minister said the prospect of oil reaching $60 a barrel by the end of the year was "not unthinkable".

Global trading has gotten off to a rocky start in October amid speculation that the European Central Bank would start tapering stimulus and as hawkish comments by Federal Reserve officials boosted speculation of a rate increase.

The Eurozone's largest exchange led the way in terms of gains yesterday, with the German DAX rising by 1.3pc. Most stocks on the index were up, unperturbed by continued rumblings about the country's biggest lender, Deutsche Bank.

The 'Financial Times' reported yesterday that the EU had given the bank "special treatment" when assessing the company's balance sheet in stress tests carried out earlier this summer. Shares in Deutsche were up 0.3pc in yesterday's trading.

The CAC was up just over 1pc in France, while in Spain, the IBEX 35 rose by 0.85pc.

The ISEQ overall index of Irish shares closed up 0.52 pc, or 31 points, finishing the day at 5869.80.

The biggest gains of the day were made by INM - up 5pc -and Smufit Kappa, whose share price climbed by over 3pc. Shares in fruit distribution giant Fyffes had losses of 2.75pc, while Ryanair shares dropped 0.8pc.

Irish Independent

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