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Japan's surprise economic move ends losing streak in Euro shares


European stocks rose as they rebounded from a three-week low

European stocks rose as they rebounded from a three-week low

European stocks rose as they rebounded from a three-week low

IRISH shares rose yesterday, snapping a two-day losing streak, as markets rallied on an unexpected decision by Japanese policy makers to support its economy.

By the close of trading the ISEQ Overall Index had climbed 0.4pc, or 13.7 points, to reach 3,281.58. It was a reasonably steady day on the market as seven more stocks climbed than fell, on the highest volume of the week.

Of the major stocks, Ryanair was the leader on the main market. The so-called budget airline rose 2.65pc to €4.38 as it launched a new route into Poland and the company seemed to shake off Spain's decision to probe Ryanair's policy of flying its planes with close to the minimum of fuel.

Origin Enterprises rose 1.9pc to €4.30. The agri-services business reported strong annual profits on the back of a good performance of its agronomy division and increased its dividend by 36pc. Travel software firm Datalex added 2.78pc to 74c.

Few stocks made significant moves down, although construction giant CRH fell 0.3pc to €15.27.

Elsewhere, European stocks climbed, halting a two-day decline, after the Bank of Japan joined the Federal Reserve in opting for further asset purchases to support the economy and on news that housing starts had climbed in the US.

National benchmark indices advanced in 14 of the 18 western-European markets. Germany's DAX added 0.6pc, France's CAC 40 gained 0.5pc, and the UK's FTSE 100 rose 0.4pc. The benchmark Stoxx Europe 600 Index added 0.4pc.

"The European Central Bank and Federal Reserve have effectively taken out some of the tail risk," said Bill O'Neill, the head of Merrill Lynch Wealth Management. "Come what may they are going to stimulate the economies."

Japan's central bank unexpectedly expanded its asset-purchase target by 10 trillion yen (€100bn) as it seeks to avoid a contraction in the world's third-largest economy.

In the US, new house building climbed to a 750,000 annual rate in August from a revised 733,000 pace in July, a Commerce Department release showed in Washington.

Porsche rose 7.2pc after a German court dismissed two lawsuits relating to its attempted takeover of Volkswagen in 2008.

ASML, Europe's largest chip-equipment maker, declined 3pc after a South Korean newspaper reported that Samsung may cut back on investment in 2013, increasing concern that the chip industry will slow down.

A Samsung spokesman said the company, which is the world's largest seller of mobile phones and televisions, has yet to make a decision.

Heineken gained 6.4pc after firms owned by Thai billionaire Charoen Sirivadhanabhakdi gave their support for the Dutch brewer's $4.6bn for a 40pc stake in Asia Pacific Breweries.

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