European stockmarkets surge again on the back of China rate cut
Stockmarkets around Europe soared again yesterday as China cut its interest rate for the fourth time this year.
The shot in the arm came just a day after European Central Bank President Mario Draghi said the ECB is prepared to offer further stimulus to the Eurozone later this year in order to buoy the region's economy.
China's surprise out-of-hours move saw it cut it benchmark one-year lending rate by 25 basis points to 4.35pc and lower big banks' reserve requirement ratio by 50 basis points to 17.5pc.
"It is basically throwing more fuel into the global risk rally after Draghi's pretty bold moves," said Alvin Tan, an FX strategist at Societe Generale, about the China cut.
In Ireland, the ISEQ Overall Index joined the euphoria, ending the session 1.6pc, or 108.72 points, higher at 6,523.82.
CRH jumped 3.1pc, or 76 cent, to €25.44, but Bank of Ireland shed 2.6pc to 35 cent.
Smurfit Kappa jumped almost 3.8pc to €25.70. Its rise was helped by the announcement that it has appointed James Lawrence, the former head of Rothschild's US arm, as a non-executive director.
Shares in mobile technology firm Zamano crashed 9.4pc to 14 cent after it terminated talks that could have resulted in an offer for the firm.
Agri firm Origin Enterprises gained 2.7p to €6.85. Rose Hynes has been appointed non-executive chairman at the group.
The UK's FTSE-100 gained 1.06pc. Germany's DAX rose 2.88pc and France's CAC-40 added 2.53pc. "The DAX is a big runner today, as it typically performs well on euro weakness," said Hance Markets analyst Richard Perry.
European stocks were also propped up by some solid earnings updates. Shares in Norwegian insurer Gjensidige surged 12.3pc after reporting third-quarter profits ahead of market expectations.