Business Irish

Saturday 17 August 2019

Stock ups as Draghi promises more to lift inflation in Eurozone

Thinkstock Images
Thinkstock Images
Donal O'Donovan

Donal O'Donovan

European stocks rose for a second day, extending a three-month high, amid investor optimism about global growth, while gains in healthcare companies helped offset declines in banks.

Stock markets were boosted after European Central Bank (ECB) President Mario Draghi said he yesterday that he is ready to act quickly to boost anaemic inflation in the Eurozone.

His comments offered the strongest hint yet that the bank will unveil fresh stimulus measures at its December 3 meeting. The euro fell against both the dollar and sterling on the news.

In equity markets AstraZeneca led drugmakers higher, up 1.6pc. ABN Amro Group climbed 3.4pc on its first day of trading in Amsterdam after an initial public offering.

But UK lender Barclays led lenders lower, falling 3.5pc after Morgan Stanley cut its rating to equal weight, citing risks to consensus earnings estimates.

Glencore fell 1.8pc as miners erased earlier gains. The Stoxx Europe 600 Index rose 0.2pc to 381.78 at the close of trading. Shares have rebounded 13pc since a September low amid optimism of more ECB stimulus measures.

In Dublin, the ISEQ index of Irish shares closed up 0.4pc yesterday at 6,714.37. Among the gainers was hotel chain Dalata, which rose 4.17pc to €4.75 a share, Bank of Ireland closed up more than 3pc at 33.6cents a share and Mincon, ICG and INM all ended the session up more than 2pc. Among the smaller number of decliners, Origin Enterprises dropped 2.63pc to €7.40 a share and Smurfit Kappa fell 2.50pc to €25.11.

Elsewhere, shares moving on corporate news included Imperial Tobacco, up 1.8pc on speculation that rival BAT is arranging financing to make a bid.

K+S AG fell 1.2pc after Credit Suisse downgraded the German potash producer to underperform on lower commodity prices.

Additional reporting by Bloomberg

Irish Independent

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