European stocks rose yesterday, ending the longest rout in 11 years, while Italian and Greek bonds gained on prospects for more stimulus.
Ten-year Italian bond yields dropped six basis points to 2.52 per cent while Greek securities pared the biggest weekly decline in more than two years.
In Ireland, the Iseq rose by 3.2 per cent to 4,487.62.
DUBLIN
It was a good day for the big names in Dublin market.
Bank of Ireland
rose by 4.4 per cent, to 28.7 cents,
CRH
was 4.4 per cent higher, at €16.555, and
Kingspan
closed gained 4 per cent, to €11.68.
Aer Lingus and Ryanair both had good days, up 3.4 per cent and 2 per cent respectively. This marked a reversal of recent sentiment towards airline stocks in the wake of the Ebola scare. Drinks group C&C rose by 3 per cent to €3.826.
LONDON
The UK’s top equity index rebounded from 15-month lows as concerns eased over the state of the US economy, while
Tullow Oil
benefited from a broker upgrade.
The blue-chip FTSE 100 index, which had fallen some 5 percent in the first four days of this week to reach 15-month lows, closed up by 1.9 per cent.
Tullow Oil was the best-performing FTSE stock, surging 8.3 per cent after Société Générale upgraded its rating to "buy" from "hold".
Rolls-Royce missed out on the rally, slumping 11.5 per cent after it warned that deteriorating economies in areas such as Europe and China meant its profits would not rise next year as previously forecast.
EUROPE
European stocks climbed the most in more than two years, as an ailing euro- zone economy increases pressure on policymakers to provide more stimulus measures.
Seventeen shares rose for every one that fell in the Stoxx 600, with trading volumes 83 per cent greater than the 30-day average, according to data compiled by Bloomberg.
The gauge slid 7.7 per cent in the previous eight days to a one-year low and is down 2 per cent this week, its fourth consecutive loss and longest streak since June 2013.
Carmakers gained the most as the European Automobile Manufacturers Association reported growth in car sales last month. Peugeot Citroen climbed 5.7 per cent.
Accor rose 2.9 per cent after Europe's largest hotel operator reported sales growth that beat analyst estimates. Rolls-Royce tumbled 11 per cent after the maker of commercial-aircraft engines cut its revenue outlook for the full year.
The MSCI Emerging Markets Index added 0.2 per cent, trimming this week’s decline to 1.7 per cent.
NEW YORK
US stock-index futures rallied on speculation central banks will support economic growth with more stimulus.
Morgan Stanley gained 5.4 per cent in early trading after reporting earnings, excluding an accounting adjustment, of 65 cents a share, topping the 54- cent average estimate of 23 analysts surveyed by Bloomberg.
General Electric rose 4.9 per cent after beating profit estimates as cost-cutting helped to boost margins.
Google slipped 0.7 per cent after the internet search provider missed profit and revenue estimates for the third quarter. Advanced Micro Devices fell 1.5 per cent after the chipmaker reported lower profit and sales and said revenue in the current period may slump as much as 16 per cent from the prior quarter.
Schlumberger advanced 3 per cent after the oil company posted profit that beat the average analyst projection.
The Standard and Poor’s 500 Index is down 2.3 per cent this week, heading for a fourth week of losses. Contracts on the Dow Jones Industrial Average gained 152 points, or 0.9 per cent, to 16,167.
The S&P has tumbled 7.4 per cent since a record in mid-September on concern a global slowdown will hurt the American economy just as the Fed considers when to raise interest rates. – Additional reporting by Bloomberg and Reuters
