Business World

Wednesday 24 January 2018

European shares up on stimulus hopes

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters

Donal O'Donovan and agencies

European shares rose to a one-month high yesterday, boosted by a weaker euro and with a rival bid emerging for the operator of the London Stock Exchange (LSE).

Shares in LSE rose 7.6pc after US rival ICE said it was considering making an offer for the group that could derail Deutsche Boerse's planned tie-up with the British company.

The pan-European FTSEurofirst 300 index rose 1.2pc to reach a one-month high after stronger than expected US manufacturing data sent the euro - already weakened by a poor Eurozone manufacturing survey - to a fresh one-month low against the dollar.

That likely boost for European exporters lifted shares in car firms and other industrial producers. The STOXX Europe 600 Auto index was up 3pc.

In Dublin the Iseq index closed 0.30pc higher, lagging the rest of the market.

Shares in hotel operator Dalata closed up almost 6pc at €4.7150 yesterday, ahead of annual results due to be released today. Total Produce was up 6.34pc at 1.51 a share, while Fyffes rose 4.72pc to €1.31.

Paddy Power/Betfair closed down more than 3pc at €135.50 a share.

Markets generally rose after data showing activity in China's manufacturing sector shrank more sharply than expected in February, ironically because that raised hopes that authorities in Beijing would announce further stimulus measures to revive growth.

Commodities giant Glencore underperformed a positive mining sector after reporting $5.8bn of charges, mostly impairments following a slide in commodity prices, and a 32pc fall in 2015 core profit. Barclays fell 8.7pc after reporting lower profits and the sale of its Africa businesses.

Irish Independent

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