Business Irish

Tuesday 26 March 2019

Glanbia boosts Iseq as Europe rallies shares gain

 

Glanbia stock surged following a forecast of continued growth for the company (stock photo)
Glanbia stock surged following a forecast of continued growth for the company (stock photo)

Shares in Dublin rallied alongside their European peers in afternoon trading yesterday, with the Iseq adding almost 1.4pc to 6,054.38 points as Glanbia stock surged on its earnings.

Shares in the global nutrition and foods group were up as 10pc at one stage, the most since May 2010, after the company beat estimates and forecast continued growth in 2019.

In Europe, carmakers led an advance as the Stoxx Europe 600 Index erased Tuesday's drop, while Lloyds Banking Group rose after it unveiled a £1.75bn (€2bn) buyback plan. J Sainsbury fell sharply due to anti-monopoly objections to its Asda merger plans.

Treasuries were flat and European bonds mostly edged up, but Italian notes declined. Credit ratings agency Fitch is due to publish an update on Italy's rating outlook tomorrow.

The euro was little changed and the pound slipped as UK Prime Minister Theresa May headed back to Brussels in a last-ditch attempt to save her Brexit deal, and as three Conservative MPs quit to join a new party.

In Asia, equities in South Korea and Hong Kong set the pace for gains across most of the region. The Japanese yen dropped, giving shares a boost, after the nation's trade deficit came in wider than expected.

With the US and China continuing negotiations toward a trade deal, the latest news has shifted focus to a campaign vos made by President Trump to address Beijing's periodic devaluation of the yuan.

Investors will also be preoccupied by the release of minutes from the Federal Reserve later on Wednesday and from the European Central Bank a day later, while they'll have a glut of German data to contend with toward the end of the week. "At the start of the year with the upshoot in equities, everything was sort of moving together," Peter Borish, chief strategist at Quad Capital LLC, told Bloomberg TV in New York.

"We are now starting to not see that and that is always the first sign of warning signals in the marketplace that it might be getting ready for a correction."

The MSCI All-Country World Index rose 0.2pc to its highest level in 19 weeks, while the MSCI Emerging Market Index surged 1.2pc as risk trades gained popularity.

Bloomberg

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