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Markets steady on massive stimulus

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A NYSE trader yesterday

A NYSE trader yesterday

REUTERS

A NYSE trader yesterday

Markets rebounded yesterday, heading into the weekend on what's become a rare upswing, as the scale of governmental interventions to prop up economies became clearer.

In Ireland, bank and travel and tourism shares which have suffered massive falls in recent weeks clawed back some of those losses.

However, many investors remain nervous. Bank of Ireland's New Ireland blocked withdrawals from its property funds yesterday, the third investment manager here to do so as the coronavirus spooked investors and made property harder to value.

New Ireland deferred redemptions for as long as six months on three funds just one day after Irish Life stopped withdrawals from four of its funds. Zurich Insurance temporarily suspended withdrawals at its Ireland-based property fund from March 20 after recent outflows, a company spokesman said.

In the UK, the pound continued its recent rally, enough to hold back the Ftse from rebounding quite as quickly as markets elsewhere in Europe.

Traders' mood has become increasingly positive after Thursday's commitments from central banks in Europe to keep economies ticking over. The UK, US and Germany were among countries to make major spending pledges on Friday, further underpinning confidence.

The Iseq 20 index of Irish shares closed up 3.37pc yesterday with AIB, Bank of Ireland, Dalata and Ryanair all up.

David Madden, market analyst at CMC Market UK, said: "Central banks and governments have been throwing money at the health crisis and it seems that some of it is starting to stick, which is why stocks are firmly higher."

Irish Independent