Tuesday 23 January 2018

European stocks advance to one-week high after US jobs report

A board displaying exchange rates is seen at a foreign exchange house in Mexico City
A board displaying exchange rates is seen at a foreign exchange house in Mexico City

European stocks advanced on Friday to close at their highest level this week after data showed United States employers added the most workers in four months.

By the close in Dublin, the ISEQ Overall Index was up 0.62pc or 39.87 points to end the trading week at 6,510.67

The leaders on the Dublin market included speciality baker Aryzta, which rose 7.9pc to €26.97, while dairy company Glanbia was up 1.7pc to €15.90.

On the other side of the board, the laggards included insulation group Kingspan, which dropped 0.5pc to €26.87, while packaging giant Smurfit Kappa dropped 1pc to €24.89.

Elsewhere, building on an earlier report that signalled a stronger euro-area economy, the Stoxx Europe 600 Index rose 0.6pc to 364.07 in a broad-based rally.

Only the basic-resources sector lost ground, with mining stocks dropping along with metal prices following lower-than-expected China macroeconomic data.

The Euro Stoxx 50 Index added 0.6pc, moving further away from a key support level representing its 50-day moving average.

Employers in the United States added 227,000 workers last month, well above the median forecast of 180,000 in a Bloomberg survey of economists, and following a 157,000 increase in December.

The jobless rate, however, rose to 4.8pc, and average hourly earnings grew 2.5pc from January 2016, the weakest since August.

European mining stocks bucked the trend, with the Stoxx 600 Basic Resources index closing 2.7pc lower after Chinese economic data missed estimates and the nation's monetary policy was tightened.

The sector index has been falling toward a key support level representing the 50pc retracement of the index's slump from the peaks of 2011 to the lows of early 2016.

Bloomberg

Irish Independent

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