Saturday 24 February 2018

Global stocks rise on US tapering

Jockey Tony McCoy jumps the last to win the Paddy Power Steeplechase
Jockey Tony McCoy jumps the last to win the Paddy Power Steeplechase
Peter Flanagan

Peter Flanagan

IRISH shares rose sharply in line with global markets, as traders basked in the US Federal Reserve's decision to "taper" its bond buying programme.

By the close in Dublin the ISEQ Overall Index had added 1.48pc, or 64.91 points, to close at 4,453.75. That was the third daily gain out of the last four, and puts the ISEQ further up the table of the world's best performing markets this year.

The Dublin market has been the best performing index in the eurozone, and out of Europe only Iceland has bettered its 35.2pc return in 2013.

Markets surged after the Fed decided to reduce its quantitative easing programme as the move was seen as confirmation that the US recovery is now firmly on track. Recruitment firm CPL led the way yesterday, climbing 4.3pc to €7.34.

Irish-led food company Aryzta continued its recent good run, jumping 3.3pc to €54.87.

Bookmaker Paddy Power added 2.9pc.

Patrick Kennedy's company was hit by a profit warning last month but made headlines around the world yesterday after it said it was sponsoring a trip by basketball superstar Denis Rodman to North Korea.

CRH rose 2.2pc to €17.87. The construction materials group garners around half of its revenue from the United States, and is seen as being especially sensitive to the possibility of sustained economic recovery there.

Nearly twice as many stocks rose as fell but among the laggards were the two state controlled banks.

AIB fell 1.8pc to 11c, while Permanent TSB dipped 6.4pc to 4c.

The IMF warned the banks still faced headwinds, with the tracker mortgage issue in particular needing to be addressed.

Elsewhere it was a similar narrative. European stocks rallied the most in more than two months as the Federal Reserve's taper boosted investor confidence that the US economic recovery is on course.

National benchmark indices rose in all of the 18 western- European markets. The UK's FTSE 100 Index increased 1.2pc, France's CAC 40 added 1.5pc and Germany's DAX jumped 1.5pc. The composite Stoxx Europe 600 Index climbed 1.6pc.

Irish Independent

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