Monday 20 November 2017

Shares rise on back of US revival

Joe Brennan

IRISH shares jumped yesterday, in line with gains across Europe and North America, as news of the biggest rise in US jobs in three years indicated the global growth is strengthening.

The Iseq Overall index jumped 1.4pc to 3,292.2 points, as traders across Europe returned to their desks following the Easter weekend break.

Banking stocks were in demand, as investors piled in on mounting hopes that Bank of Ireland will avoid majority state ownership as it hits the market with a massive rights issue within the next month.

BoI jumped 12.2pc to €1.80, while Allied Irish Banks, which signalled a massive sale of foreign assets last week, added 4.2pc to €1.25.

Buoyant US economic news helped market heavyweight CRH, which generates half its earnings in America, rise over 1pc to €19.10. Elsewhere, Elan was also in demand, gaining 3.6pc to €5.79.

Bucking the trend, Aer Lingus lost 2.6pc to 75c as oil prices soared above $87 a barrel, hitting fresh 18-month highs on the back of growing optimism about the world's largest economy.

US payrolls increased by 162,000 last month after a revised 14,000 decrease in February that was smaller than initially estimated, figures from the US Labor Department showed on Friday. Yesterday was the first chance that European markets had to react to the data.

National benchmark indexes gained in 16 of the 18 western European markets. The UK's FTSE 100 advanced 0.6pc, France's CAC 40 climbed 0.5pc and Germany's DAX increased 0.3pc.

But Greece's benchmark index lost 2.2pc for the worst performance among the markets, amid speculation that a plan for EU and International Monetary Fund (IMF) assistance in reducing the nation's budget deficit may falter.

Boliden, Europe's second-largest zinc producer, jumped 2.4pc to lead advances in mining shares after copper futures rose to their highest level since the collapse of Lehman Brothers. Mining peer Xstrata rose 1.6pc.

Renault , France's second-biggest carmaker, gained 3.9pc. Daimler and Renault's boards are holding meetings today to approve plans for a global alliance that will include a share swap.

Vodafone slipped 1.4pc as the world's largest mobile phone company faces a shareholder battle in the Congo. Its Congolese unit is seeking a $484m capital injection through a share sale.

Euler Hermes, the world's largest trade-credit insurer and a unit of Germany's Allianz, soared 5.6pc. The stock was raised to "overweight" from "underweight" at HSBC.

(Additional reporting, Bloomberg)

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business