Tuesday 22 August 2017

Oil prices and US job figures lift markets

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the announcement that the U.S. Federal Reserve had hiked interest rates for the first time in nearly a decade
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the announcement that the U.S. Federal Reserve had hiked interest rates for the first time in nearly a decade

Most European stock markets rose yesterday, propelled by stronger oil prices and data from the United States that showed the biggest drop in nearly two years in weekly jobless claims.

Investors were also cautiously awaiting the summit between US President Donald Trump and China counterpart Xi Jinping.

That two-day meeting began yesterday, with the Mr Trump having raised the possibility of using US-China trade ties to pressure Beijing to do more to rein in North Korea's arms programme.

German factory orders rebounded from their steepest decline in eight years in a sign the recovery in Europe's largest economy remains intact. Germany's economy expanded at the fastest pace in five years in 2016 and recent data shows that trend is set to continue, with private-sector output accelerating and unemployment falling to a record low.

The ECB, meanwhile, has proposed that large branches of foreign banks in the European Union be subject to tighter regulation and capital requirements, a move that would increase US and Asian lenders' costs and also hit British banks after Brexit.

Ireland's ISEQ Overall Index closed up 0.43pc at 6,679.52. Movers included Ryanair, which advanced 2.3pc to €15.14 after it said it was revamping fares, introducing a connection option for its own passengers to its own network, and also starting interlining - air travel in which the same ticket covers different legs of the journey flown by different airlines -with Aer Lingus and Norwegian.

Shares in Bank of Ireland rose 2.1pc to 24 cent. Providence Resources shares tumbled 8.9pc to 20 cent. The UK's FTSE-100 was down 0.4pc. Germany's DAX rose 0.1pc and France's CAC-40 was 0.58pc higher.

Reuters

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