Monday 23 October 2017

European stocks advance on results as week draws to a close

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Colm Kelpie

Colm Kelpie

European stocks rose for a second day as investors assessed corporate results, and amid speculation that central banks will support global growth.

By the close in Dublin, the ISEQ Overall Index was up 1.5pc, or 92.39 points, to end the trading week at 6,240.29.

The leaders on the Dublin market included Kerry Group, which increased 3.6pc to €79.49, while speciality baker Aryzta rose 3.2pc to €43.49. On the other side of the board, the laggards included insulation group Kingspan, which slipped 0.2pc to €23.20, while insurance group FBD fell 3.1pc to €6.25.

Elsewhere, the Stoxx Europe 600 Index rose 1.5pc to 331.54 at the close of trading, with miners and energy stocks leading as commodities advanced.

After paring gains of as much as 2.1pc to about 0.9pc, the Stoxx 600 extended its advance after a disappointing inflation reading for Germany.

Separate data showed consumer prices in France and Spain missed estimates, strengthening the case for an expansion of the European Central Bank's monetary stimulus.

"With a lot of policy events coming there is a fair chance of more stimulus plans so the markets can squeeze higher," said Benno Galliker, a trader at Luzerner Kantonalbank. "We had the chance to really sell off further after the horrible Wednesday, but the big reversal shows that there is some expectation building up into those events." China's central bank governor said there's more room for monetary easing if needed, assuaging investor concern about the world's second-biggest economy.

After a global rout at the start of the year fuelled by worries about China's slowdown and sliding oil prices, investors will look to the G20 meeting in Shanghai for indications that policy makers are prepared to support growth.

Additional reporting by Bloomberg

Irish Independent

Also in Business