Wednesday 22 November 2017

German exports lead markets stronger

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

Donal O'Donovan and Reuters

Stock markets rose yesterday in spite of the latest weak economic data from China. After starting the day down, Chinese stocks rose nearly 3pc yesterday after a late buying surge erase early losses.

Chinese authorities have made share buying more attractive this week by removing tax on dividends for investors who hold stock for at least a year.

In China stocks rose even after data showed imports shrank more than expected in August, falling for the tenth straight month.

"Today's rally is a bit of a catch-up after we saw global markets do well on Sunday night and Monday morning," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

In Europe, the positive tone was boosted by a strong set of German trade data.

German exports and imports hit record highs in value terms in July, suggesting foreign appetite for goods from Europe's largest economy remained robust despite a slowdown in China, while domestic demand was also holding up well.

The Europe-wide FTSEurofirst 300 index was up 1pc while Germany's DAX outperformed to close up 1.2pc

In Dublin the ISEQ closed up 0.8pc and movers included Paddy Power, which was down just under 1pc at €98.59 after announcing more details on its Betfair merger, and CRH, which was up 2.5pc at €26.27 a share.

In the US Apple shares were up 2.2pc to $111.69 each ahead of the iPhone maker's annual marketing showcase in San Francisco today. The stock gave the biggest boost to the S&P and the Nasdaq.

Yesterday's trading was a respite after markets were rattled in recent weeks by fears that China's slowdown could drag on already sluggish global growth.

Irish Independent

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