European shares hit three-month highs as ECB action predicted

European shares hit fresh three-month highs yesterday, rising in thin trade as expectations grew for aggressive European Central Bank (ECB) action next week.

The pan-European FTSEurofirst 300 index was up 0.9 per cent at 1,515.25 points, hitting its highest level since August.

The euro edged towards seven-month lows against the dollar as investors bet that the ECB would ease policy again in December. "Expectations surrounding the ECB are running very high, and this is driving European markets higher, weakening the euro and helping them do better than US stocks," said Marco Vailati, head of research and investment at Italy's Cassa Lombarda.

DUBLIN The Iseq finished up 1.5 per cent at 6,811, roughly in line with its European peers.

Swiss-Irish food group Aryzta put in another dismal performance, falling 2.6 per cent to 43.12 in the wake of news that its European boss, Hilliard Lombard, is to leave the company. The firm has been battling to restore investor confidence in the face of questions about its acquisition strategy and the health of its US business.

Allied Irish Banks rose 2.3 per cent to €0.04 after successfully raising €500 million in additional Tier 1 capital.

Iseq heavyweight CRH also rose 2.3 per cent to €27.91, enjoying the general shift upward in European markets.

Packaging group Smurfit Kappa rose 2.6 per cent to €25.26, which was in line with European industry rivals.

Ryanair had another good session, finishing up 2.5 per cent at 14.23.

Paddy Power's ascent continues. The bookmaker's shares rose to €119.80 after rising 2.5 per cent on Wednesday.

LONDON The FTSE 100 index rose 55.5 points to 6,393, a 22-day high. The pound was slightly down against the US dollar at $1.51, as traders yesterday digested the chancellor’s autumn statement, which was less austere than expected. Sterling was up against the euro at just under €1.43.

Miners recovered some of the losses made on Wednesday, despite copper prices being at near six-year lows. Glencore was up 5.3p to 95.9p, Antofagasta rose 18.9p to 517.5p and Anglo American was 18.6p higher to 435.8p.

Banks were in the spotlight after Barclays was fined £72 million by the Financial Conduct Authority for cutting corners on financial checks for a secretive £1.9 billion transaction on behalf of very wealthy clients. However, shares lifted 3.7p to 225.2p.

Meanwhile, Lloyds Banking Group announced details of 1,000 job cuts. The job losses are part of an overall target to slash its workforce by 9,000. Shares edged up 1p to 73.1p.

EUROPE Rémy Cointreau fell 3.5 per cent after reporting a 7.3 per cent fall in like-for-like current operating profit in the first half, reflecting soft Chinese demand for its premium Cognac.

Another drinks company, Royal Unibrew, rose 8.4 per cent after reporting quarterly results above analysts' expectations and raising its medium-term core profit target.

Abengoa shares slumped for a second day as the renewable-energy firm continued insolvency proceedings. A potential investor backed out of a €350 million deal to recapitalise the company. The stock was down 30 per cent after wiping out half its market value on Wednesday.

Mining stocks were among the top gainers, rising 1 per cent as base metals prices rallied after falling to multi-year lows early in the week.

Auto stocks were also in demand, with the sector index up 2.4 per cent. The sector was also helped by gains in Volkswagen, which rose 3.5 per cent and is set for a 10th day of gains. Baader Bank Helvea confirmed its "hold" rating on the stock and said it remained cautious because of uncertain costs related to Volkswagen rigging emissions tests for some of its cars.

NEW YORK Wall Street was closed for the US Thanksgiving holiday.