Irish shares up for third day buoyed by European stocks
THE ISEQ rose for the a third day this morning trading as shares across Europe soared.
The benchmark index was up 32.08 points to 3,177.97, buoyed by miners such as Kenmare, the two main banks and Independent News & Media which had risen more than 7pc by noon.
As usual, the ISEQ tracked gains elsewhere in Europe where stocks rose to a four-month high and Spanish bonds extended a rally on speculation that policy makers will take action to ease Europe’s debt crisis.
The Stoxx Europe 600 Index advanced as much as 1.2pc to the highest level since April 4 at lunchtime, while futures on the Standard & Poor’s 500 Index pared losses to trade down 0.2pc. The yield on the Italian 10-year bond rose five basis points after the nation sold debt, while the similar-maturity Spanish yield dropped for the fourth day. The euro depreciated 0.4pc to $1.2269, snapping a three-day gain.
European Central Bank president Mario Draghi meets with US Treasury Secretary Timothy Geithner in Frankfurt today after leaders in Berlin, Paris and Rome backed him by saying they will do what’s needed to protect the 17-nation euro.
Spain’s economy shrank 0.4pc in the second quarter, the National Statistics Institute in Madrid said today.
“Given the sheer scale of the structural adjustment that is still needed in Europe and accelerating capital flight from peripheral countries to the core, it will take extraordinary efforts from the ECB to implement lasting solutions,” said Kaha Kiknavelidze, London-based managing partner at Rioni Capital Partners.