Saturday 25 November 2017

Draghi comments spark market surge

Traders work on the floor of the New York Stock Exchange shortly after the opening of the markets in New York. Photo: Reuters
Traders work on the floor of the New York Stock Exchange shortly after the opening of the markets in New York. Photo: Reuters

Reuters

European stockmarkets surged yesterday as ECB boss Mario Draghi said that more stimulus could be injected in the region by the end of the year as it continues to drag its heels in finding its way to meaningful recovery.

"The degree of monetary policy accommodation will need to be reviewed at our December meeting when new macroeconomic projections will be available," Mr Draghi said at a press conference in Malta.

"Today was a tone-setter for what is to come," said Luke Bartholomew, investment manager at Aberdeen Asset Management.

"The ECB's rhetoric really emphasises the fragile state of the European, and global, economy."

The euro fell to a three-week low of $1.1140 after Mr Draghi's news conference, down 1.8pc on the day and on track for its biggest daily loss in seven months.

Ireland's ISEQ Overall Index gained 58.42 points, or 0.92pc, to end the session at 6,415.10.

Gainers included Bank of Ireland, up 1.1pc at 36 cent, and CRH, which added 1.5pc, or 38 cent to €24.68. Shares in Hibernia REIT were 1.3pc higher at €1.34.

Insulation maker Kingpsan slumped 4.1pc or 90 cent to €21.

The FTSE-100 closed 0.44pc higher, while Germany's DAX rose almost 2.5pc. France's CAC-40 advanced nearly 2.3pc.

In the UK, retail sales rose for a 29th consecutive month in September, according to data published by the Office of National Statistics.

Shares in Vodafone rose 3.4pc, while mining firms also performed well in London. Glencore jumped 5.9pc, and BHO Billiton and Rio Tinto each rose 1.8pc.

In France, Jameson owner Pernod Ricard soared 5.2pc as it recorded a 3pc rise in first quarter sales to €2.2bn.

Irish Independent

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