Re­lief rally across global mar­kets

Doubts about US mil­i­tary strikes on Syria helps boosts in­vestor con­fi­dence Po­ten­tial deal on IAG takeover of Nor­we­gian Air gives Euro­pean air­lines a lift

The Irish Times - Business - - MARKETS - PETER HAMIL­TON

Ire­land’s bench­mark Iseq in­dex out­per­formed wider Euro­pean mar­kets yes­ter­day, ris­ing 0.95 per cent.

Euro­pean shares rose along­side a re­lief rally across global mar­kets af­ter US pres­i­dent Don­ald Trump sig­nalled that mil­i­tary strikes in Syria may not be im­mi­nent. How­ever, the sig­nals were not suf­fi­cient for UK in­vestors, and Bri­tain’s FTSE 100 re­mained flat on the day.

DUBLIN

Chat­ter sur­round­ing a po­ten­tial takeover of Nor­we­gian Air by Aer Lin­gus owner IAG gave Euro­pean air­lines a lift . Bud­get air­line Ryanair in­creased 1.64 per cent on the Iseq to €16.09.

Mo­men­tum in the banks has been strong fol­low­ing re­marks from Euro­pean Cen­tral Bank pol­i­cy­maker Ewald Nowotny ear­lier in the week. He said he would have no prob­lem mov­ing the de­posit rate from -0.4 per cent to -0.2 per cent. As a re­sult both AIB and

Bank of Ire­land moved up on the day. Shares in AIB in­creased 3.79 per cent to €5.15, while Bank of Ire­land edged up 1.91 per cent to €7.48.

It was a mixed day for prop­erty plays on the Ir­ish mar­ket, with some home­builders and real es­tate in­vest­ment trusts edg­ing up while oth­ers lost out. Among the losers were Glen­veagh Prop­er­ties, drop­ping 1.23 per cent to €1.124, and

Green Reit, fall­ing 0.27 per cent to €1.49. Mean­while,

Cairn Homes pushed up 0.57 per cent to €1.76 on the day, while Hiber­nia Reit closed higher by 1.7 per cent at €1.436.

While Glen­veagh was the loser on the Iseq 20, it was In­de­pen­dent News and Me­dia that fell the most on the wider Iseq over­all in­dex. The news­pa­per group fell 5.88 per cent to €0.08.

LON­DON

Bri­tain’s lead­ing stock in­dex ended the day up 0.02 per cent. Shares in Bri­tish Air­ways owner IAG fell 1.1 per cent af­ter the air­line said it was con­sid­er­ing mak­ing an of­fer for low-cost car­rier Nor­we­gian. Nor­we­gian’s shares, which are the most-shorted among Euro­pean air­lines, rose 47 per cent on the bid news. Among mid-caps, shares in Bri­tish bus and rail op­er­a­tor FirstGroup rose 8.2 per cent af­ter a takeover of­fer from US pri­vate eq­uity firm Apollo Global Man­age­ment.

Shares in re­tailer Dunelm rose 8.8 per cent af­ter it re­ported a jump in third-quar­ter on­line sales which boosted rev­enue growth. Small-cap Carpetright’s shares sank 9.4 per cent af­ter the floor­ing re­tailer said it planned to close 92 stores and re­duce rents at 113 of its sites in a re­struc­tur­ing ef­fort.

EUROPE

The pan-Euro­pean Stoxx 600 in­dex closed up 0.7 per cent af­ter a neg­a­tive start as sen­ti­ment im­proved dur­ing the day.

Shares in Sulzer ral­lied 19.5 per cent af­ter the Swiss pump-maker said it freed it­self of US sanc­tions af­ter au­thor­i­ties ap­proved its buy­back of shares that has re­duced to less than 50 per cent the stake of Rus­sian oli­garch Vik­tor Vek­sel­berg, chair­man of hold­ing com­pany Ren­ova.

Shire rose 2.6 per cent af­ter sources told Reuters Takeda had sounded out cred­i­tors for loans to help fi­nance a pos­si­ble bid for the Bri­tish rare dis­ease spe­cial­ist.

NEW YORK

Tech­nol­ogy and fi­nan­cial stocks boosted Wall Street yes­ter­day as US pres­i­dent Don­ald Trump sug­gested that a mil­i­tary strike on Syria may not be im­mi­nent and in­vestors turned their fo­cus to the up­com­ing earn­ings sea­son, which is pro­jected to de­liver the strong­est re­sults in seven years.

Strong quar­terly re­sults from Black­Rock and Delta Air Lines added to the san­guine mood. Delta topped profit es­ti­mates, send­ing its shares 2.9 per cent higher and boost­ing other air­line stocks. Black­Rock gained 1.8 per cent af­ter the as­set man­ager’s profit rose more than ex­pected.

The Dow Jones rose 324.09 points, or 1.34 per cent, to 24,513.54, the S&P 500 gained 24.64 points, or 0.93 per cent, to 2,666.83 and the Nas­daq Com­pos­ite added 77.80 points, or 1.1 per cent, to 7,146.82.

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