Friday 24 November 2017

European bourses rebound after rout

Specialist Mike Pistillo works on the floor of the New York Stock Exchange. Photo: AP
Specialist Mike Pistillo works on the floor of the New York Stock Exchange. Photo: AP


European markets staged a comeback yesterday following a rout on Monday driven by tanking Chinese shares. But another fall in Chinese stocks yesterday was shrugged off by bourses on this side of the world.

The recovery was propelled by strong mergers and earnings activity. Oil prices remained under pressure.

"For me, China is a short blip rather than a real slowdown. What we are hearing from company management is pretty buoyant," said Ingo Speich, portfolio manager at Union Investment in Frankfurt.

The main China indices fell again, although by nowhere near as much as Monday's 8.5pc plunge. The Shanghai market benchmark closed 1.7pc lower.

The ISEQ Overall Index closed up just under 1pc, or 61.43 points, to end the session at 6,380.05.

Ryanair jumped 2.1pc, or 25 cent, to €12.27 after this week unveiling a 25pc rise in profits during its first quarter. The shares had fallen on Monday.

Shares in Permanent TSB were 2.7pc, or 13 cent higher, at €5.15 after it made a pre-exceptional profit of €1m in the first half of the year - the first time since 2007 that it has turned a profit.

Shares in Bank of Ireland edged 1.3pc higher to 38 cent.

Convenience food group Greencore - which has its listing in London - dipped almost 1pc to £3.15. It said that it's on track to deliver expected full-year results.

The UK's FTSE-100 gained 0.7pc, while Germany's DAX was just over 1pc higher. France's CAC-40 rose 1pc.

RSA Insurance soared 18pc on news Zurich Insurance is considering a takeover bid. Hikma Pharmaceuticals was up more than 7pc.

Irish Independent

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