European markets up on BoE rate cut

THE ISEQ overall index of Irish shares rose 0.73pc, or 41.87 points, yesterday, to close at 5,756.26 as markets around Europe rallied on the back of the Bank of England’s announcement that it is to cut its interest rate to a record low.

The biggest winners in Dublin were Bank of Ireland, which bounced back to gain 8pc, while Abbey stocks rose by 10pc.

Ovoca Gold’s volatile week continued with the exploration firm gaining 17pc. Shares in Paddy Power Betfair rose by 4pc.

Stocks in mobile phone technology firm Zamano declined by 7pc after the firm revealed lower revenues in the first two quarters of this year. The firm said it has conducted a strategic review and will concentrate on the acquisition of strategic purchases to help boost revenues.

The announcement of the BoE rate rise had an instant impact in London, with the FTSE 100 index showing a rise of 1.9pc. The German Dax rose by 0.7pc, while the French CAC was also up 0.7pc. Wall Street was little changed yesterday as investors were wary of making big bets ahead of today’s US payrolls report.

The crucial monthly hiring data will help investors gauge the health of the economy and offer clues about when the Federal Reserve could make a decision on raising rates.

Seven of the 10 major S&P 500 sectors were higher, led by a 0.52pc gain in the information technology index.

The US economy likely expanded at a 3.7pc annualised rate in the third quarter, compared with the government’s advance reading of second-quarter growth at 1.2pc last Friday, the Atlanta Federal Reserve’s GDP forecast model showed yesterday.

On currency markets, sterling dropped to its largest one-day fall in a month against the dollar after the BoE decision.