China move helps ISEQ rebound
IRISH shares rebounded yesterday from Monday's slump amid positive news from both China and the US.
By the close in Dublin, the ISEQ Overall Index was up 2pc or 76.11 points to 3860.30.
The Dublin market rose throughout the day as China's central bank said it will keep money-market rates at a "reasonable" level and seasonal forces that have driven them up lately will fade.
The People's Bank of China has provided liquidity to some financial institutions to stabilise money market rates and will use short-term liquidity operation and standing lending facility tools to ensure steady markets.
On the other side of the world, orders for US durable goods rose more than forecast last month.
The leaders in the Dublin market included Bank of Ireland, which was up 6.3pc to €0.15 amid figures from the Department of Finance which showed borrowing by Irish banks from the ECB has fallen by 45pc.
Speciality baker Aryzta was up 3.2pc to €43.40 while Ryanair closed up 2.1pc to €7.
Packaging giant Smurfit Kappa was up 1.5pc to €11.55.
On the other side of the board, the laggards included AIB, which slipped 6.2pc to €0.06, while shipping and transport group Irish Continental was down 1.5pc to €22.16.
Exploration company Providence Resources was down 0.8pc to €6.25.
It was a similar story in mainland Europe with shares climbing from a six- month low.
The Stoxx Europe 600 Index increased 1.5pc to 279.69 at the close of trading, its biggest gain in two months.
National benchmark indexes rose in all of the 18 western European markets except Italy.
The UK's FTSE 100 added 1.2pc, while France's CAC 40 advanced 1.5pc. Germany's DAX increased 1.6pc.
"We've been risk-off since April, so at this moment it becomes more about when you go in and buy," said Fredrik Nerbrand, London-based head of asset allocation at HSBC Holdings.
"Before I can even contemplate adding risk, I need to see some stabilisation in markets. That will take some time."
Car maker Peugeot Citroen rose 4.9pc after saying it received more than 26,000 orders for its 2008-model crossover in Europe.
French concessions and construction company Vinci rose 3.9pc after Berenberg Bank initiated coverage of the stock with a buy rating.
British multinational semiconductor and software design company ARM Holdings gained 3.6pc as Investec recommended buying the shares.
Across the Atlantic, US stocks also rebounded The Standard & Poor's 500 Index added 0.8pc by early evening yesterday.