Wednesday 11 December 2019

ISEQ dips as European bourses edge higher on upbeat US data

Shares in Bulmers maker C&C rose 1.5pc
Shares in Bulmers maker C&C rose 1.5pc

John Mulligan/Reuters

European stocks rallied from lows yesterday after a stronger than expected increase in earnings in a flagship US jobs report made up for a weaker-than-forecast payrolls figure.

US employment increased less than expected in December but a rebound in wages pointed to sustained labour market momentum that sets up the economy for stronger growth and further interest rate increases from the Federal Reserve this year.

The US jobs numbers issued for November were also revised upwards yesterday. "The big upward revision to November and a 2.9pc increase in average hourly wages are going to be enough to let markets keep their faith in the Trump reflation trade and the US Federal Reserve plans further interest rate increases," Russ Mould, investment director at AJ Bell, said.

Ireland's ISEQ Overall Index fell 0.5pc to 6,581.70.

Shares in Bulmers maker C&C rose 1.5pc to €3.95, while insurer FBD was as much as 3pc higher during the session before falling back to end the day just under 1pc higher at €7.11.

Shares in Kerry Group were down 1.2pc at €68.11, while Permanent TSB retreated 1.7pc to €2.80.

The UK's FTSE-100 was 0.3pc higher. Germany's DAX closed up 0.1pc and France's CAC-40 was 0.6pc ahead.

Precious metal miners fell as gold slipped from one-month highs, hindered by the strength of the dollar.

Shares in Fiat Chrysler Automobiles soared 7pc, the biggest riser in the STOXX 600 index, after Goldman Sachs added the stock to its 'Conviction List' and raised its target price to €16.50 from €9.90.

"In our view the market significantly underappreciates FCA's ability to improve its NAFTA price-mix via shifting production away from mass-market cars and into more profitable vehicles," Goldman Sachs analysts said.

Irish Independent

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