ISEQ climbs as investors speculate on bank boosts
Goldman Sachs predicts 'very bad' outlook for US as IMF cuts global growth forecast
Published 07/10/2010 | 05:00
IRISH stocks climbed amid speculation central banks around the world will follow the Bank of Japan in announcing measures to boost their economies.
The ISEQ advanced for a third day, adding 29.05 points, or 1.1pc, to close at 2739.72 points as shares across the continent gained. National benchmark indexes rose in all other 17 western European markets except Sweden. Germany's DAX Index gained 0.9pc, while France's CAC 40 Index also jumped 0.9pc. The FTSE 100 Index increased 0.8pc.
CRH rose 3.4pc to €12.73, shrugging off comments by Davy Stockbrokers analyst Barry Dixon who told clients this morning that calculations based on currency fluctuations suggest a slight decrease in 2010 and 2011 earnings forecasts. Those declines have already been captured in the share price, Mr Dixon added.
Smurfit Kappa advanced 1.7pc to €7.68 as the paper maker was raised to 'buy' from 'neutral' at UBS.
Ryanair climbed 1.4pc to €4.07 after the airline said it hedged 90pc of its jet-fuel needs for the first half of the financial year ending March 2012 at $775 a metric tonne. The airline hedged 25pc of its third-quarter fuel requirements at $745 a tonne, it added. Rival low-cost airline EasyJet soared 12pc in London, the largest gain since January 2009, after saying full-year profit beat its forecast.
The Stoxx Europe 600 Index rose 0.5pc as shares posted gains across the continent. European stocks pared their advance after data from a private payrolls report showed that companies in the US unexpectedly cut workers in September. Employment decreased by 39,000, according to figures from ADP Employer Services.
Goldman Sachs said the US economy would likely be "fairly bad" or "very bad" over the next six to nine months and the International Monetary Fund cut its global growth forecast.
BHP Billiton, the world's biggest mining firm, rose 3pc; while Rio Tinto, the third-largest, jumped 3.5pc. Copper, lead, nickel, tin and zinc all rose on the London Metal Exchange.
ThyssenKrupp climbed 1.8pc after Germany's largest steelmaker was quoted as saying that it anticipates a pre-tax profit of about €1bn in the fiscal year through September.
Volkswagen rose 1.2pc as Europe's largest carmaker said it may produce a mid-sized car, designed for US customers, in China in a bid to win buyers in the world's biggest auto market.
Saipem added 3.8pc after Europe's largest oilfield-services provider was raised to 'buy' from 'sell' at Citigroup.
Ericsson fell 2.6pc as Royal Bank of Canada cut its estimate for third-quarter sales at the world's biggest maker of mobile-phone networks to 46bn kronor from 50bn kronor, saying currency impact, component shortages and lack of improvement in emerging markets may point to underwhelming results".