Almost all European markets climbed, recovering from slippage earlier in the session, as remarks by European Central Bank president Mario Draghi were interpreted by investors as potentially allowing for a extension of its stimulus efforts.
The president said the central bank, which held interest rates steady as expected, had not discussed either ending its asset-buying programme or extending it at its latest meeting. Investors took solace in Mr Draghi’s more dovish tone.
The euro fell to a four-month low against the US dollar, while a gauge of banks in the euro zone climbed for a fifth day, its longest streak in more than two months.
Dublin
The Iseq index rose 0.8 per cent as some of its biggest stocks rallied in the final hour of trading. Ryanair closed up 3.2 per cent at €12.74, the stock continuing to advance despite Monday’s profit warning, amid positive sentiment towards airlines.
Building materials group CRH was less buoyant, closing up 0.1 per cent at €30.15. Food groups Kerry and Origin and cider-maker C&C edged down, while paper and packaging Smurfit Kappa fell 1.1 per cent to €20.42.
The Green Real Estate Investment Trust (Reit) fell by the same percentage to €1.39, but hotels group Dalata rose 3 per cent to €4.17, as an industry report suggested some resilience in the Brexit-afflicted UK hotels market.
Bank of Ireland closed at 19 cent, up more than 7 per cent, with the stock buoyed by support for lenders across Europe.
London
The FTSE 100 ended the day in positive territory, but only just, advancing 0.1 per cent. In a volatile session, the index of blue-chip stocks staged a more sluggish recovery relative to other major European indices.
The biggest risers were Royal Bank of Scotland and Barclays, up 3.5 and 3.2 per cent respectively. Traders said good results from US banks were helping the sector.
The mid-cap FTSE 250 fell 0.5 per cent, hit by profit warnings. Cyber security company NCC plummeted 35 per cent, its biggest-ever daily decline after it faced some contract cancellations and difficulties with some renewals.
Mid-cap engineering companies Keller and Senior slumped 27 per cent and 20 per cent respectively after both issued profit warnings.
Among blue chips, advertising giant WPP fell 3.6 per cent after Publicis Groupe, down 5.7 per cent, said third-quarter sales grew by just 0.2 per cent on an organic basis following the loss of large media accounts in the US in 2015.
Concern about advertising revenues hit broadcaster ITV, with its shares down 3 per cent after broker Liberum cut its target price for the stock.
Europe
The pan-European STOXX 600 index ended up 0.2 per cent. In Germany, the Dax climbed 0.5 per cent, while the Cac 40 in France rose 0.4 per cent.
Deutsche Bank rose 3.8 per cent after German business monthly Manager Magazin said sovereign wealth funds from Qatar and Abu Dhabi and a Chinese investor could buy a 25 per cent stake in the lender.
Shares in German engineering company GEA tumbled 20.2 per cent after the firm slashed its profit guidance for this year.
Shares in Nestle, the world's biggest food company, dipped after the Swiss group cut its sales outlook.
However, Lufthansa jumped 7.9 per cent after raising its profit guidance, lifting the shares of other airlines such as Air France KLM.
US
Wall Street stocks fell in early trading amid disappointing results from
Verizon
Communications to
eBay
, while commodity producers retreated as crude oil fell from a 15-month high.
American Express rallied the most in seven years after boosting its projection for annual profitability. Insurance company Travelers lost 5.1 per cent, the steepest slide in the Dow, after posting its fourth straight profit decline as weather-related costs climbed and investment income slipped.
Verizon sank 2.4 per cent after adding fewer monthly mobile subscribers than analysts had predicted, while eBay suffered its worst drop since January after forecasting fourth-quarter revenue and profit that may miss projections.
Union Pacific slumped 5.3 per cent as its profit missed predictions, with freight demand continuing to decline and the railroad struggling to boost prices.
A fifth of S&P 500 companies have released results so far, and nearly 83 per cent have beat earnings expectations, according to data compiled by Bloomberg. (Additional reporting: Bloomberg / Reuters)
