Tuesday 25 September 2018

European stock markets track higher

A man walks in front of a board displaying the exchange rate for Mexican peso and US dollars at a foreign exchange house in Mexico City
A man walks in front of a board displaying the exchange rate for Mexican peso and US dollars at a foreign exchange house in Mexico City

European stock markets were on track to finish higher yesterday, with even the UK's FTSE-100 edging up despite slowing factory orders there.

European indices were spurred as Wall Street was set to open at record highs again, bolstered by the decisive win by Japan's incumbent prime minister Shinzo Abe in a snap general election. That sent Japan's indices to their 15th consecutive day of gains.

Growth in British factory orders slowed to its weakest in almost a year in October, a monthly survey from the Confederation of British Industry showed yesterday, even though firms were working at their closest to full capacity in 20 years.

The CBI's factory order book balance unexpectedly fell this month to -2, its lowest since November 2016, from +7 in September, below all expectations in a Reuters poll that on average forecast it would rise to +9.

"We've seen a general softening in manufacturing activity over the past three months, with the outlook for investment becoming more subdued," the CBI's chief economist, Rain Newton-Smith, said.

In Ireland, the ISEQ Overall Index was mirroring gains of the broader European market.

The index was 0.55pc, or 37.29 points higher at 6,827.07 near the close.

Shares in Bank of Ireland had edged 0.6pc higher, at €6.56, as bank bosses began meetings with Finance Minister Paschal Donohoe to discuss the tracker mortgage scandal.

Shares in Ryanair were almost 1.8pc lower near the close, at €15.95, as pilots prepare to ask for new pay terms and conditions at the carrier.

Germany's DAX was 0.1pc higher near the close and France's CAC-40 was up almost 0.5pc.

Reuters

Irish Independent

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