Monday 23 October 2017

Forecast for German confidence beats estimate

Jakarta's stock market is basking in the quick turnaround the economy made from last year's currency crisis
Jakarta's stock market is basking in the quick turnaround the economy made from last year's currency crisis
Sarah McCabe

Sarah McCabe

STOCKS were little changed across Europe yesterday as mining companies climbed and a forecast for German confidence beat estimates.

The ISEQ Overall Index was no different, rising 8.30 points or 0.18pc by early afternoon to 4729.77.

The index was still down by nearly 3pc over the last five trading days following the recent rout in emerging markets. Some 14 of the share prices listed rose while 14 fell and 17 stayed static.

INM saw the biggest gains, up 7pc to 16c by early afternoon. TVC Holdings, the investment group with a large stake in UTV, was up 3pc to 77c.

Bank of Ireland added 2pc to 30c while AIB gained 2pc to 14c. But the country's third largest lender Permanent TSB, whose share price, like AIB's, often tracks Bank of Ireland's, had shed 7pc to 8c by 12.52pm, the second largest percentage losses of the day.

Mining company Aminex dropped 11pc to 2c and Ryanair fell 1pc to €6.56.

The composite Stoxx Europe 600 Index fell by just under 0.1pc to 324.14 at 11.52am.

The gauge jumped as much as 1.2pc earlier in the day as Turkey's central bank raised interest rates to halt a currency slide.

Turkey's lira rose against the dollar earlier in the day after the country's central bank raised its repurchase rate to 10pc from 4.5pc and boosted other key borrowing costs at a late-night emergency meeting.

"It's a step in the right direction," said Berkeley Futures associate director Richard Griffiths.

In the UK the FTSE 100 Index advanced 0.1pc as a report forecast that consumer confidence in Europe's biggest economy will rise to the highest level in six and a half years. Anglo American, which owns Anglo American Platinum, advanced 5pc to £14.10.

PLATINUM

The owner of the world's biggest platinum mine said fourth-quarter production of the metal rose 25pc as it recovered from labour disruptions.

"Commodities are very world growth geared, and as there seems to have been a turnaround in world growth, that should benefit commodities such as copper," said James Butterfill, a global equity strategist at Coutts. "Given recent weakness in emerging markets, people might start to question the strength of the (world growth) recovery, but I think that we should look through that, and see that the recovery is still intact."

In Italy Fiat slid 5.7pc to €7.10 after the Turin-based carmaker reported that fourth-quarter earnings before interest, taxes and one-time items rose 5pc to €931m from €887m a year earlier, missing analyst estimates.

In Germany the DAX rose 0.2pc to 48.32 at 12.47pm in Frankfurt after German research company GfK forecast that a gauge of consumer confidence will rise to 8.2 in February from a revised 7.7 in January.

That would be the highest since August 2007.

US stock-index futures were also little changed, while Asian shares climbed.

Irish Independent

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