Monday 24 October 2016

Shares steadier with the Eurozone return to growth

Published 14/05/2015 | 02:30

European shares steadied early yesterday, helped by some calm returning to bond markets and by strong results from France's Vivendi and Britain's SABMiller.

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In Dublin the ISEQ index of Irish shares was higher heading into the close at 6088.05, up 0.70pc.

The pan-European FTSEurofirst 300 index was up 0.2pc at 1,578.41 points at 07.13 GMT, mirroring a fall in yields across the main euro zone government bonds.

The FTSEuro first had shed 1.3pc in the previous session and is down 4.5pc from a 14 and a half year high hit last month.

Investors were also digesting mixed economic data from the Eurozone's two largest economies, with France growing faster than expected in the first quarter while Germany suffered a bigger-than-forecast slowdown.

Drinks group SABMiller rose 2pc after reporting full-year profit above analyst expectations as performance picked up in the latter half of the year, but saying trading would continue to be tough in its new financial year.

Media company Vivendi also rose 2pc after posting a rise in first-quarter profit and saying it planned to buy the rest of pay-TV operator Canal Plus' SECP unit.

In Dublin drinks maker C&C was among the big gainers up 3.42pc to €3.594 after announcing results for 2014 yesterday, including a €150m write-down at its US operations.

Green Reit was also stronger, up 2.77 to €1.595 a share.

In the US stocks rose amid corporate deals, while the dollar fell after retail sales missed forecasts, adding to concern economic growth is slowing.

Oil jumped with precious metals, while a selloff in European bonds abated and the region's growth picked up.

The Standard & Poor's 500 Index climbed 0.3pc at 10.03am in New York after two days of declines.

The yield on 10-year Treasury notes was little changed at 2.23pc, after Tuesday touching a five-month high.

The Bloomberg Dollar Spot Index lost 0.7pc. US oil topped $61 a barrel, while gold climbed to a one-week high.

The Stoxx Europe 600 Index advanced 0.2pc, and German 10-year bund rates gained for only the second time in 13 sessions.

Sales at US retailers were little changed in April, starting the second quarter on a weak note after economic growth slowed in the first three months of the year.

Debt sales in Italy and Germany added to signs a selloff that wiped more than $400bn off the value of fixed-income markets may be abating.

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