Business World

Monday 10 December 2018

ECB decision sends European stocks up

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

European stock markets jumped yesterday despite political chaos in Catalonia as the European Central Bank said it would extend its massive bond-buying programme to the first nine months of 2018 at a reduced rate of €30bn a month.

Markets rose even as that sharpened concerns that the ECB might run short of some categories of sovereign bonds to buy.

US stock indices climbed amid a raft of robust earnings reports and speculation about the Federal Reserve's next leader. By midday in the US, the Dow Jones Industrial Average briefly touched a record high and the S&P 500 Index rebounded from Wednesday's drop as results from Twitter to Ford topped estimates. The dollar rose the most in almost 15 weeks, while oil lingered near $52 a barrel.

The latest batch of corporate results underscored strength in the American economy a day before investors get the first reading on gross domestic product for the third quarter.

In Ireland, the ISEQ Overall Index gained along with other European indices, rising 1.93pc to 6,850.92.

Bank of Ireland surged 5.3pc to €6.62 after releasing a third-quarter trading update that was in line with expectations, and capital levels ahead of estimates.

Shares in Ryanair jumped almost 3.5pc to €15.91, seeing it recoup some losses as it continues to manage pilot unrest.

C&C rose 1.5pc to €2.98 as the Bulmers maker delivered its first-half results.

The UK's FTSE-100 was 0.5pc higher. Germany's DAX rose 1.39pc and France's CAC-40 ended the session 1.5pc ahead.

UK retail sales plunged in October at their fastest rate since early 2009, when the country was last in recession, according to a survey that could deepen economists' doubts about the wisdom of raising interest rates next week.

Reuters

Irish Independent

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