Saturday 18 January 2020

Bet on QE sees Standard & Poor's 500 hit record high

In all, 25 shares fell in Dublin while just six gained.
In all, 25 shares fell in Dublin while just six gained.

The Standard & Poor's 500 Index topped 2,000 for the first time yesterday, dominating equities news.

The US index hit the new high on speculation of takeover deals and the prospects for increased European stimulus.

Shares also closed up across Europe, as the market digested last Friday's speech from ECB President Mario Draghi which has boosted the prospects of monetary taps being turned on to lift prices.

In Paris the Cac index finished up more than 2pc, while German's Dax index of leading shares closed up 1.8pc.

In Dublin the Iseq index of leading shares was 0.65pc up at the close, to 4722.53.

Markets were closed in London for a bank holiday.

With euro area quantitative easing (QE) on the agenda the euro dropped 
to an 11-month low verses the dollar 
and German two-year note yields 
dropped below zero.

In Dublin, nationalised lenders Permanent TSB and AIB made the biggest gains, though shares in each traded well in excess of most expert valuations.

Mincon stock was up more than 5pc, recovering ground lost on disappointing results last week.

CRH was also stronger, again after last week's results.

Shares in FBD were up 1.46pc ahead of its results today, to €14.265 each. UTV was 1.15pc higher, again ahead of results, at €2.63.

Mining and minerals names dominated the laggard side of the board in Dublin.

Ormonde Mining closed down 16.6pc at 5 cents a share. ICG was down 3.57pc to €2.70

Elsewhere, Burger King shares shot up 20pc on its talks to buy coffee and doughnut chain Tim Hortons in a deal that would slash the combined fast food group's tax bill through a shift to Canada.

(Additional reporting Bloomberg)

Irish Independent

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