Monday 27 January 2020

European bourses rise on optimism

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell

A KEY index of world stocks climbed to record highs while the US dollar sank to a month low yesterday as investors digested the recent US interest rate increase and indications there would be no pick-up in the pace of monetary tightening.

European stock markets gained after the Dutch election victory by Prime Minister Mark Rutte, who fought off a challenge by anti-immigration, anti-European Union rival Geert Wilders.

Figures released yesterday showed that US homebuilding jumped in February as unseasonably warm weather boosted the construction of single-family houses to near 10-year high.

The figures suggested the economy remained on solid ground despite an apparent slowdown in the first quarter.

Other data showed a drop in the number of Americans filing new applications for unemployment benefits last week, pointing to a further tightening in the labour market. Ireland's ISEQ Overall Index gained 0.65pc, or 42.98 points, to end the session at 6,687.13.

Stocks that moved included Ryanair, which jumped 3.4pc to €14.61. Bank of Ireland dipped 1.2pc to 24 cent, while hotel group Dalata was 1.9pc higher at €4.56.

Shares in exploration minnow Karelian Diamond Resources were unchanged in Dublin as the results of geological data saw it extend a kimberlite body at its Finnish prospect where it recently found a large diamond.

Permanent TSB shares rose slightly to €2.49 each after analysts at Davy cut their price target to €3 from €3.12. The UK's FTSE-100 was 0.64pc higher. Germany's DAX rose 0.61pc and France's CAC-40 was up 0.56pc. Anglo American was the top European gainer after Indian billionaire Anil Agarwal said he would buy up to £2bn in the miner.


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