Span­ish rally nudges up Euro stocks

Trad­ing on Iseq flat as FTSE slips, weighed down by falls for house­builder stocks Pound rises to four-week high against the euro on cur­rency mar­kets

The Irish Times - - Business Markets - LAURA SLAT­TERY

Span­ish equities re­bounded yes­ter­day, re­as­sured by week­end demon­stra­tions for a uni­fied Spain and a poll lead for par­ties op­posed to Cata­lan in­de­pen­dence. Spain’s Ibex bench­mark rose 2.4 per cent, out­per­form­ing a 0.1 per cent gain for the pan-Euro­pean Stoxx 600 in­dex. DUBLIN

The Dublin mar­ket was flat, with trad­ing vol­umes low as a re­sult of the bank hol­i­day. The Iseq in­dex closed up 0.2 per cent, with few dra­matic moves. Build­ing ma­te­ri­als group

CRH, the largest stock on the in­dex, lost 1.2 per cent to ¤32.08, while in­sur­ance group FBD was another faller, clos­ing down 1.1 per cent at ¤8.90 and

Ryanair nudged down 0.3 per cent ahead of its half-year re­sults this morn­ing.

Else­where, most stocks posted gains, with Paddy Power Bet­fair and Per­ma­nent TSB

Group both adding more than 2 per cent, Smur­fit Kappa ris­ing 1.2 per cent to ¤25.76 and Glan­bia up 1.6 per cent to ¤16.60. Glan­bia, Paddy Power Bet­fair and Smur­fit Kappa all pub­lish earn­ings up­dates to­mor­row.

The real es­tate in­vest­ment trust stocks Green Reit and Hiber­nia Reit also ad­vanced. LON­DON

The FTSE 100 fell 0.2 per cent, weighed down by falls for house­builder stocks. Bell­way and

Berke­ley lost 1.1 per cent and 1.4 per cent re­spec­tively af­ter an­a­lysts at Bar­clays down­graded both of them.

Shares in HSBC fell 1.5 per cent de­spite re­port­ing a five-fold jump in quar­terly prof­its as bro­ker In­vestec main­tained its sell rat­ing on the stock. EasyJet shares rose al­most 2 per cent af­ter the dis­count air­line clinched a deal to buy up part of Air Ber­lin’s op­er­a­tions for ¤40 mil­lion. Min­ing and re­sources gi­ant

Glen­core rose 0.8 per cent af­ter fall­ing ear­lier in the ses­sion fol­low­ing a trad­ing up­date and a re­port say­ing it would can­cel its se­condary list­ing in Hong Kong due to lack of in­ter­est from in­vestors.

Ster­ling hit a four-week high against the euro, bol­stered by the view that the Bank of Eng­land

will this week raise in­ter­est rates for the first time in over a decade. Stocks that ben­e­fit from pound weak­ness, such as Bri­tish Amer­i­can To­bacco and Di­a­geo, fell. EUROPE

Span­ish banks Caix­a­bank and Banco de Sabadell jumped more than 4 per cent, lead­ing Spain’s Ibex in­dex 2.4 per cent higher.

Spain’s Bankia gained 2.2 per cent af­ter re­port­ing a smaller-than-ex­pected drop in net profit and as the lender made progress in shrink­ing its bad loan port­fo­lio.

Euro­pean tech stocks joined a global tech rally on the back of solid earn­ings from US stal­warts and on strong pre-or­ders for Ap­ple’s iPhone X. Euro­pean iPhone sup­pli­ers STMi­cro, Dia­log Semi and AMS rose 2.3 per cent, 5.6 per cent and 4.8 per cent re­spec­tively. Dutch paints maker Akzo No­bel, un­der pres­sure af­ter re­ject­ing a lu­cra­tive takeover of­fer and two profit warn­ings, con­firmed talks with smaller US ri­val Ax­alta Coat­ing Sys­tems and rose 0.7 per cent. US

Wall Street pulled back from record-high ter­ri­tory yes­ter­day, weighed down by a drop in Merck shares and a re­port that US. law­mak­ers are dis­cussing a grad­ual phase-in of much-an­tic­i­pated cor­po­rate tax cuts.

The Dow Jones In­dus­trial Av­er­age fell 85.45 points, or 0.36 per cent, to 23,348.74, the S&P 500 lost 8.24 points, or 0.32 per­cent, to 2,572.83 and the Nas­daq Com­pos­ite dropped 2.30 points, or 0.03 per­cent, to 6,698.96.

The tech-heavy Nas­daq touched an in­tra­day record high ear­lier in the ses­sion be­fore pulling back.

Ap­ple shares gained 2.3 per cent af­ter an­a­lysts pointed to strong de­mand for the iPhone X. Merck shares fell 6.1 pe rcent af­ter a set­back to its key can­cer medicine. The stock was among the top drags on the S&P 500 and Dow in­dus­tri­als.

Gen­eral Mo­tors dipped 2.8 per cent af­ter Gold­man Sachs down­graded the com­pany’s stock to “sell” from “neu­tral”.

– (Ad­di­tional re­port­ing: Reuters)

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