Monday 25 September 2017

Positive US jobs figures boost shares across Europe

Colm Kelpie

Colm Kelpie

IRISH shares gained yesterday in line with major European stocks on the back of positive economic data from the US.

By the close in Dublin, the ISEQ Overall Index was up 1.3pc, or 50.96 points, to end the trading day at 3,981.84.

The index remained largely flat throughout the morning before rallying in the early afternoon as a US report showed employers added more workers last month than forecast.

The leaders in the Dublin market included Irish drug company Elan which increased 5.3pc to €10 as Royalty Pharma upped its offer for the company from $12.50 to $13 per share. In an interview with the Irish Independent, Royalty boss Pablo Legorreta said he believed the higher offer would "get the deal done".

Speciality baker Aryzta almost reversed its loss yesterday by gaining 2.5pc to finish at €43.66, while Aer Lingus was up 1.4pc to €1.64 as the airline reported passenger numbers had increased 5.3pc last month on May 2012.

On the other side of the board, the fallers included food ingredients company Kerry Group, which lost 0.3pc to €43.28, while Ryanair lost 0.1pc to €6.79.

Donegal Creameries was down 3pc to €4.85, while shipping and transport group Irish Continental slipped 0.2pc to close at €22.50.

Elsewhere, European stocks advanced – rebounding after the Stoxx Europe 600 Index fell to its lowest level in more than six weeks on Thursday.

The Stoxx 600 climbed 1.3pc to 295.4 at the close of trading.

National benchmark indexes gained in 16 of the 18 western European markets yesterday.

France's CAC 40 added 1.5pc, Germany's DAX climbed 1.9pc and the UK's FTSE 100 rose 1.2pc.

The gains came as US jobs data showed the economy was growing modestly but not enough to prompt the Federal Reserve to wind down its stimulus measures.

Data showed the US economy added 175,000 jobs in May, while the unemployment rate ticked higher to 7.6pc.

"A lot of people have been in 'risk off' mood this week, and we could see them coming back in the next days. Just look at the volatility index," said David Thebault, head of quantitative sales trading at Global Equities.

UK water company Severn Trent rallied 2.5pc after a consortium of investors raised their takeover offer. Dutch teleco Royal KPN jumped 6pc after Sanford C Bernstein & Co raised its rating on the stock.

Irish Independent

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