Monday 18 December 2017

Markets - US figures help European markets rebound

The ISEQ index of Irish shares flat-lined yesterday as European stocks rebounded from a four-week low
The ISEQ index of Irish shares flat-lined yesterday as European stocks rebounded from a four-week low
Gavin McLoughlin

Gavin McLoughlin

The ISEQ index of Irish shares flat-lined yesterday as European stocks rebounded from a four-week low.

In Dublin, the ISEQ was up by just one hundredth of one percent, climbing 0.39 points to 4,826.16.

Shares in banana company Fyffes rose 2.34pc after the company agreed to revise the terms of its proposed merger with Chiquita.

Elsewhere, shares in Ryanair rose 1pc the day after the airline predicted its profits for the year would be at the upper end of the €620m to €650m guidance issued in August.

In the US, revised figures revealed that GDP rose by an annualised rate of 4.6pc, up from the 4.2pc that had been previously estimated.

It is the fastest quarterly US growth rate since the last quarter of 2011.

"We are seeing investor confidence in the US economy," said Robert Halver of Baader Bank.

"America imports goods and services from euro-land and if the economy of America - the main motor of the global economy - is running on all cylinders, it means we can export more."

The Stoxx 600 climbed 0.3pc to 342.3 at the close of trading, after earlier rising and falling as much as 0.5pc.

Oil company Total advanced 2.3pc following a report that it may sell a stake in the Gulf of Mexico's Tahiti oil field, while Air France-KLM dropped 1.7pc after the board said pilot demands don't fit with its plan for a low-cost model.

Sainsbury's lost 3.1pc as data showed 12-week sales at the grocer were down by 1.8pc.

There was good news for investors in the US as the positive GDP numbers were accompanied by corporate results exceeding expectations.

Sports equipment firm Nike jumped 11pc after reporting first-quarter profit that exceeded analysts' estimates, while Janus Capital Group rallied a huge 33pc after hiring Pimco founder Bill Gross. (Additional reporting Bloomberg)

Irish Independent

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