Business World

Monday 9 December 2019

Irish stocks up slightly as Europe suffers first weekly fall for over a month

The curve of the German share price index DAX board is pictured at the Frankfurt stock exchange April 14, 2014
The curve of the German share price index DAX board is pictured at the Frankfurt stock exchange April 14, 2014
Gavin McLoughlin

Gavin McLoughlin

Irish stocks rose marginally yesterday as the ISEQ index of Irish shares continued to outperform most of Europe. The ISEQ was up 12.65 points to 4,901.74.

Fastnet Oil & Gas had a bumper day at the end of a week in which it had its price target raised by Cantor Fitzgerald Europe. Shares in the company were up 17pc to 10 cents apiece.

Another winner on the day was property development company Abbey.

Mining companies Ormonde Mining and Kenmare Resources were the major laggards on the day, down 7.14pc and 5.37pc respectively. It's been a tough week for mining companies worldwide, amid concern over the industry's prospects in China.

European stocks suffered their first weekly fall in over a month, but were largely unchanged yesterday after swinging between gains and losses. The Stoxx Europe 600 Index was unchanged at 344.27 at the close of trading, after earlier rising as much as 0.3pc and falling as much as 0.2pc.

An increase in US retail sales and consumer confidence boosted optimism about the American economy, but also raised concern that US interest rates may rise.

"Markets are waiting for clarity on when the Fed will raise interest rates," said Guillermo Hernandez Sampere, who helps manage about €105m at German-based MPPM EK.

"At every Fed meeting, we hope we get the exact timeline because markets want to price it in. So we've seen markets go a bit sideways. There's no conviction in the market."

The Fed is gauging the strength of the economy as it winds down a bond-buying programme and considers raising rates. Officials meet for two days from next Tuesday, and have said the bank's benchmark rate will stay low for a "considerable time" after it finishes monthly bond purchases.

(Additional reporting by Bloomberg.)

Irish Independent

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