Sunday 26 January 2020

Shares up after US shutdown

Colm Kelpie

IRISH shares increased in line with European stocks as investors assessed the impact of a partial shutdown of the US government.

By the close in Dublin, the ISEQ Overall Index was up 1.1pc or 44.61 points to end the trading day at 4282.89.

It appears that the markets reacted calmly to the dramatic US shutdown, despite investors appearing jittery at the prospect on Monday.

Stocks in both the US and Europe rose, although the dollar continued to fall.

And shares in Europe appeared to be buoyed by positive news on the manufacturing front.

The Stoxx Europe 600 Index added 0.8pc at the close of trading, its biggest rally in three weeks, after a report showed that manufacturing activity in the euro area expanded for a third month in September.

National benchmark indexes advanced in every western- European market except for Britain.

Germany's DAX added 1.1pc, while France's CAC 40 Index increased 1.3pc. The UK's FTSE 100 slipped less than 0.1pc.

"For the moment, the shutdown looks more like noise rather than something that makes a fundamental difference for growth," Nicola Marinelli, portfolio manager at Glendevon King in London, said.

"If you look at the historical performance of equity indices in previous cases of government shutdown and debt-ceiling standoffs, the data show no clear trend and that equity markets can actually rebound."

In the Dublin market, the leaders included drinks group C&C which increased 4.7pc to €4.18, while specialty baker Aryzta had another good day, rising 1.9pc to €50.45.

Ryanair closed up 1.5pc to €6.39 a day after it agreed to provide contact points for its customers on its website.

Chief Michael O'Leary came under fire from shareholders last week for its customer service.

On the other side of the board, the laggards included Aer Lingus, which slipped 2.6pc to €1.48, while insurance group FBD fell 1.3pc to €14.70.

Shipping group Irish Continental was down 1.4pc to €25.20.

Irish Independent

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