Business World

Sunday 28 May 2017

Shares on the rise as data looks up for China and US banks

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Reuters

European shares rose yesterday to claw back ground from losses in the previous session, with mining and telecoms stocks outperforming.

Shares in British hedge fund Man Group jumped by 9pc after the company reported a rise in assets under management, and announced a share buyback and the acquisition of investment management company Aalto.

In Dublin, the Iseq index rose 1.5pc to 5,900.80. The recovery was broad based -ferry operator ICG was up 4.48pc to €4.20 a share, market heavyweight Kerry rose 3pc to €72.17 and Total Produce and Paddy Power were also up. Providence Resources stock dropped more than 11pc to 12 cent a share, and HR group CPL resources was weaker, down more than 3pc at €5.25 a share.

Elsewhere, the pan-European STOXX 600 index rose 0.6pc, although the index remains down by around 8pc since the start of 2016.

Mining stocks outperformed after a batch of solid economic data from China, the top global consumer of metals and the world's second-biggest economy.

Data showed that China's producer prices unexpectedly rose in September for the first time in nearly five years, while consumer inflation quickened to 1.9pc from a year earlier, also beating market expectations.

Shares in French telecoms group SFR climbed 5.6pc after rival Altice acquired another 5pc stake in SFR, with the broader STOXX Europe 600 telecoms index advancing by 0.6pc.

In the US, Wall Street was on track for its best day of the month yesterday as financial stocks rose following better-than-expected results from three big banks.

The S&P 500's financial index surged 1.16pc, its best showing in seven days, after JPMorgan, Citigroup and scandal-hit Wells Fargo reported quarterly revenue and profit that beat market expectations. The early part of the US earnings season is dominated by financials.

Irish Independent

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