Stocks climb shrugging off Russian sanction fears
Published 30/07/2014 | 02:30
European shares climbed on Tuesday, with strong earnings reports from companies such as engineer GKN and retailer Next cancelling out the impact of a threat to regional trade from further sanctions against Russia.
In Dublin the ISEQ index of Irish shares closed up at 4749.89, with Bank of Ireland up 3.17pc to 26 cents a share among the gainers. The bank's stock is up ahead of half year results due on Friday.
Merrion Pharmaceuticals, up 3.57pc to 57 cents a share led the gainers, with Smurfit Kappa up 2.15pc to €16.66 a share ahead of financial results due to be announced today.
Aer Lingus, also due to announce results today, slipped yesterday. Shares closed at €1.33 each, down 1.48pc. Ryanair was also weaker with shares down 1.37pc to €6.92 each.
Irish-owned mining machinery maker Mincon was the biggest loser on the Dublin market yesterday, with its shares down 11.63pc to 76 cents each.
In London GKN surged 6.7pc after its car parts supply division boosted first-half profits, while clothing retailer Next gained 2.6 pc after raising its guidance for annual sales and profit. Telecom firm Orange was up 1.8 pc after results.
"Markets are receiving a bid from better-than-expected earnings. It's understandable why markets remain buoyant even with current geopolitical risks," Michael Jarman, head of equity strategy at H2O Markets, said.
The FTSEurofirst 300 index of top European shares closed 0.3 pc higher at 1,373.40 points.
"Going forward, the earnings season should be decent and I expect more surprises on the upside than on the downside. The economy generally appears to be a lot stronger," Peter Dixon, equity strategist at Commerzbank, said.
Markets got a boost after data showed US consumer confidence rose in July.