Business Irish

Monday 23 September 2019

European shares up on stimulus talk

Traders work at their screens in front of the German share price index. Photo: Reuters
Traders work at their screens in front of the German share price index. Photo: Reuters
Donal O'Donovan

Donal O'Donovan

European shares rose sharply yesterday, helped by encouraging updates from companies such as Germany's United Internet and Dutch-based Randstad, the world's second-biggest staffing company.

Sentiment was also bolstered by expectations of more stimulus from the European Central Bank and by Greece's preliminary deal with its international lenders on home foreclosures.

Randstad shares jumped 6.9pc, the top gainer in the pan-European FTSEurofirst 300 index, after the company said sales had accelerated since it reported third-quarter results and that it expected higher margins in 2016.

United Internet, which provides internet services, rose as much as 4.5pc after reporting a rise in third-quarter core profit and revenues as the number of subscribers continued to rise. The stock ended up 2.2pc.

In Dublin, the ISEQ index of Irish shares closed up 1.36pc at 6,578.54. Media group Independent News & Media (INM) led the Irish gains, closing the session up 3.03pc at just over 17 cents a share. That was after the business announced its first total revenue increase in eight years.

Much of the Irish market saw gains, with Hibernia REIT up 2.82pc and Ryanair up 2.82pc. AIB was among the big decliners, the stock, widely seen as over-valued after its bailout, dropped by a fifth as a share reorganisation moved closer.

Elsewhere the FTSEurofirst 300 index climbed 2.6pc, rising for a second day.

French shares rose 2.8pc, after falling 0.1pc on Monday following the attacks in Paris on Friday.

Lorne Baring of B Capital Wealth Management said investors were showing resilience despite mounting worries over security in Europe.

Irish Independent

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