European equities rise as ECB commits to asset purchases

European markets rose for a second day with the DAX index in Germany reaching a record closing level and the FTSE in London coming close to its recent record high.

Equities climbed as the European Central Bank committed to begin asset purchases on March 9th. The ECB also left its key interest rates unchanged at record lows. ECB president Mario Draghi also unveiled forecasts showing higher economic growth with an inflation outlook that puts the ECB on track to reach its goal of just below 2 per cent in 2017.

On currency markets, the euro depreciated below $1.10 for the first time since September 2003.

DUBLIN

The Iseq climbed 1.1 per cent. Aer Lingus advanced 2.2 per cent to €2.35. The airline, the subject of a bid by IAG, published traffic statistics that showed a fall in passenger numbers but an improvement in load factors (the proportion of each flight filled). Ryanair climbed 0.4 per cent to €10.24.

Building materials group CRH rose 1.2 per cent to €24.91.

Shares in Irish Ferries owner Irish Continental Group rose 5.6 per cent in early morning trading after it announced positive 2014 results. It closed at a price of €3.80 after posting a near 10 per cent climb in revenues.

Paddy Power rose 0.8 per cent to €74.78 on a day in which Betfair raised its earnings guidance.

Independent News & Media, insulation-maker Kingspan, paper-and-packaging company Smurfit Kappa, food group Glanbia and drinks company C&C also increased on a day with few fallers.

LONDON

UK stocks rose for a second day, led by gains in insurance group Aviva and asset manager Schroders.

The FTSE 100 Index gained 0.6 per cent to 6,961.14 at the close of trading in London, as the Bank of England kept its benchmark rate unchanged as forecast by economists. Shares in the insurer jumped 7.1 per cent to 569.5 pence, closing at the highest price since 2008, after it increased its shareholder payout for 2014 amid higher profit. Friends Life Group, which is being bought by Aviva, also rose 7.1 per cent to 434.9 pence after reporting that annual earnings rose.

Schroders added 4.8 per cent to 3,178 pence after saying investors poured more money into its funds.

Broadcasting group ITV rallied for a second day as Goldman Sachs Group added the stock to its conviction-buy list and a number of analysts raised their price targets for the stock.

HSBC fell 2.7 per cent as the stock went ex-dividend, meaning the stock was trading without the attraction of its latest dividend payout.

Outside the top flight, Betfair jumped almost 18 per cent after the betting exchange raised its profits guidance for this year in the wake of a 20 per cent surge in quarterly revenues. The stock lifted 319p to 2105p.

EUROPE

European stocks advanced, pushing the Stoxx Europe 600 Index to its highest level since July 2007. Germany’s DAX Index rose 1 per cent to a record close, while Portugal’s PSI 20 Index jumped 1.7 per cent, for the best performance of 18 western-European markets.

Among individual stocks, Carrefour gained 2.4 per cent after France's largest retailer reported higher full-year earnings.

NEW YORK

US stocks rose amid corporate dealmaking, shaking off a rise in the number of unemployment benefit claims attributed to the temporary dismissal of workers in some parts of the country during a period of heavy snowfall.

Pharmacyclics surged 11 per cent after AbbVie agreed to buy the drugmaker in a $21 billion deal. AbbVie fell 3.2 per cent.

Dublin-based but US-listed Mallinckrodt climbed 4.3 per cent after buying privately held respiratory drug company Ikaria for about $2.3 billion. – (Additional reporting: Bloomberg / PA/ Reuters)