Business World

Sunday 24 June 2018

US equities advance ahead of Korea talks

Traders Steven Kaplan, right, and Michael Milano works on the floor of the New York Stock Exchange. Photo: AP
Traders Steven Kaplan, right, and Michael Milano works on the floor of the New York Stock Exchange. Photo: AP

Bloomberg/Gavin McLoughlin

US equities pushed higher in morning trading, shrugging off the weekend's trade drama, while European stocks rose as investors eased into a hectic week: three major central banks are to set interest rates, and US President Donald Trump was due to meet North Korea's leader overnight.

The S&P 500 Index rose in Monday trading, with almost all sectors gaining, while the dollar climbed with Treasury yields.

In Europe, the mood was cautiously risk-on, with the Stoxx Europe 600 Index rising for the first time in five days and core European bonds slipping. The euro strengthened and Italian bonds and stocks jumped after the country's new finance minister confirmed his commitment to the common currency.

Investors are steeling themselves for geopolitical noise as the week picks up, with Mr Trump saying yesterday that he feels "very good" about the summit with North Korea's Kim Jong Un in Singapore.

After that, traders will switch their focus to the views of the world's biggest central banks. The Federal Reserve is expected to raise interest rates on Wednesday, while European Central Bank officials are poised to hold formal talks on ending its bond-buying program on Thursday.

In Ireland, the ISEQ index of Irish shares closed up 0.3pc at 7149.42, with a 1.1pc at the most heavily weighted stock, CRH, the key driver. Ryanair, which was little changed, agreed a deal acquire a 75pc controlling shareholding in Austrian carrier LaudaMotion. Ryanair will provide financial and management support to LaudaMotion, as well as a number of aircraft.

LaudaMotion is owned by the private foundation of former Formula One racing champion Niki Lauda.

Irish Independent

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