Monday 19 March 2018

European banking stocks rise

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

Sean Duffy

The ISEQ Overall Index of Irish shares fell by 0.77pc yesterday.

On a mixed day, commodities stocks were again the biggest winners as Ormonde Mining and Kenmare Resources recorded gains of 25pc and 23pc respectively.

Shares in Bank of Ireland rose by 4p and PTSB stocks were up by 2pc. Shares in State-owned AIB suffered losses of 3pc.

Banking stocks across Europe rose on the back of a speech by ECB President Mario Draghi, in which he stated that interest rates would remain unchanged and that the bank will continue its QE programme until next March with the possibility of an extension.

The EUROSTOXX600 gained 1pc to record its highest close in almost a month. Shares on the FTSE Italia All Share Bank Index fell back after early gains, while Deutsche Bank rose by 3pc before settling back below the 2pc mark.

In London, the FTSE100 was -0.6pc, the German DAX was steady, while the French CAC Index lost 0.3pc.

Airline stocks fell sharply. Lufthansa slid 6pc after the German carrier issued a profit warning. Rival Air France-KLM fell by 5pc, along with EasyJet, which dropped 5pc after posting lower revenues. Sentiment in the industry has dampened in the wake of the latest terror attacks in France. On the currency markets, the pound was trading at $1.32, the euro was trading at $1.10 and £0.83GBP.

In the US, the DOW Jones shed 0.4pc following losses on Intel and American Express. The S&P fell by 0.3pc after hitting a record close on Wednesday.

Anerican unemployment figures were down to 253,000, close to the 43-year low of 248,00 recorded earlier this year.

The price of a barrel of crude oil lost 2pc amid fears of a supply glut.

Irish Independent

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