Friday 20 September 2019

European stocks close up on the back of positive US jobs data

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 and Bloomberg

European stocks advanced as better-than-expected US jobs data fuelled the possibility of a Federal Reserve rate hike this year, weakening the euro currency and boosting the attractiveness of exports from the region.

Fed officials, including chairwoman Janet Yellen, this week said they could raise interest rates in December if data are supportive.

By the close in Dublin, the ISEQ Overall Index was up 1.05pc, or 68.83 points, to end the trading session at 6,600.29.

The leaders on the Dublin market included building materials group CRH, which closed up 4.1pc to €26.16, while insulation group Kingspan increased 1.7pc to €22.30.

On the other side of the board, the laggards included Kerry Group, which slipped 1.4pc to €71.76, while UTV Media fell 5.8pc to €2.45.

Elsewhere, Germany's DAX Index was among the biggest gainers of western-European indexes, with BMW and HeidelbergCement adding at least 2.2pc.

Cie. Financiere Richemont slid 5.7pc, leading a gauge of personal-and-household goods stocks to among the worst performances on the Stoxx Europe 600 Index, after the owner of Cartier and Montblanc forecast a challenging end to its year amid a slump in demand for watches in Asia. Swatch Group and LVMH Moet Hennessy Louis Vuitton fell at least 2.7pc.

The Stoxx 600 rose 0.3pc to 379.95 at the close of trading, paring earlier gains of as much as 0.9pc.

"Yellen now has the credit to hike rates in December and consensus will be even higher, she can't go against the evidence that the US economy is doing better," said John Plassard, a senior equity-sales trader at Mirabaud in Geneva. "A weaker euro will help exporters and particularly the German economy."

The euro slid to a seven-month low against the dollar after the release.

Irish Independent

Also in Business