Irish stocks advance led by Aryzta rise
Irish stocks shrugged off the defeat of UK Prime Minister Theresa May's withdrawal agreement yesterday, having risen almost 0.4pc in afternoon trading.
Aryzta led the way a day after posting results that the company said showed signs of stabilisation. The Cuisine de France owner has had a torrid few years that saw billions of shareholder value wiped out, but saw shares rise almost 10pc to trade at €1.25 each in afternoon trading.
Datalex had another good day, as investors digested the news that Dermot Desmond is in talks to put €10m in funding into the business. It was up more than 8pc yesterday afternoon.
The day's laggards included Amryt Pharma, which was down more than 5pc just before 4pm. Permanent TSB was down almost 3pc.
As the Brexit saga continued Citigroup strategists insisted that investors should use the political crisis as an opportunity to look at beaten-down UK equities.
British stocks have only been cheaper during the global financial crisis in the past 25 years based on dividend yields, according to Citigroup. And in the past century they were only more discounted relative to low-risk UK government bonds called "gilts" on a yield-gap basis during World War I, they said.
"UK equities look cheap from all angles and carry a significant Brexit risk premium," Citigroup strategists led by Jonathan Stubbs, wrote in a note.
"Many investors view the UK as uninvestible; we get it, but see decent valuation support. A negative outcome is not impossible, but still appears much less likely than a non-negative outcome."
US equities climbed in morning trading as data signalled a resilient economy and modest pressure on inflation.
The S&P 500 Index gained for a third day, wiping out last week's losses and reaching a four-month high.
"It's pretty remarkable the strength of the market over the last couple of days," said Emily Roland, the head of capital markets research at John Hancock Investments. The producer-price data "is further evidence that the Fed's more patient approach should provide support for risk assets, at least for now".
Additional reporting Bloomberg