Markets subdued before US holiday
Thanksgiving celebrations seemed to have started a bit early this year as European and US equity markets yesterday posted inconsequential gains in very subdued markets yesterday.
Traders were gearing up for a day off after news that a Eurogroup summit failed to agree on a Greek debt deal, according to Justin Doyle of Invesec Bank.
The euro, meanwhile, rose against most of its 16 most-traded peers on speculation European finance ministers are close to finalising a debt-reduction package for Greece.
In Dublin the Iseq index of Irish shares closed up 4 points (0.1 per cent) at 3,243, with stocks climbing higher on little volume, according to one Dublin stockbroker.
Glanbia shares closed up 3.87 per cent at €8.05. This week Glanbia Co-op placed 8.84 million shares in Glanbia plc at a price of €7.60. The placing, equivalent to 3 per cent of the company, was valued at €67.2 million.
It was also a positive day for Kerry Group, which rose 1.25 per cent to €39.14, and packaging group Smurfit Kappa, which ended up 1.56 per cent at €8.77.
Budget airline Ryanair fell 1.91 per cent to close at €4.58, while agri-services group Origin Enterprises declined 1.67 per cent to €4.22.
UK shares rebounded from early falls for the second session in a row yesterday, with a rising oil price supporting energy stocks to lead British blue chips higher
United Utilities Group gained 1.9 per cent after JPMorgan Chase said Ofwat, the water regulator, had clarified proposed changes to companies’ licences. British Land added 1.8 per cent after Morgan Stanley upgraded the shares.
Johnson Matthey lost 5.8 per cent in heavy volume of over three times its average 90-day volume.
The FTSE 100 Index climbed 3.93 points, or 0.1 per cent, to 5,752.03 at the close in London. The gauge rose 0.2 per cent yesterday, completing its biggest two-day rally since August, as shareholders approved the $31 billion takeover of Xstrata and ministers met to discuss Greece.
European stocks advanced for a third day as gains by Veolia Environnement, SAP and carmakers, as well as a decline in applications for US jobless benefits, offset the failure of euro region policy-makers to reach a decision on assisting debt-laden Greece.
Veolia Environnement rose 1.3 per cent after getting approval for the sale of its US waste-management business.
Fiat climbed 1.6 per cent.
Imagination Technologies Group slipped 3.9 per cent as it said it would monitor mobile chip designer CEVA’s counter-bid for MIPS Technologies.
German stocks rose for a third day as a rally in SAP outweighed a deadlock among euro area finance ministers on releasing further aid for Greece. SAP jumped to a 12-year high after Salesforce.comforecast fourth-quarter sales and profit in line with analyst estimates.
US stocks were little changed as a lack of progress on some of the potential pitfalls facing the market kept investors cautious.
Investors also remained anxious about the tax and spending changes that are poised to come into effect in the new year, although policy-makers are not expected to get back to negotiations until after today’s Thanksgiving holiday.
Facebook rose to the highest price in almost four months, buoyed as investors’ confidence in the potential for advertising revenue growth overcame a surge in the number of tradeable shares. The shares traded up 5.4 per cent to $24.36 at 12.24pm in New York, and earlier touched $24.53 for the highest intraday price since July 27th.
A small gain in IBM helped the Dow outperform the other indexes. IBM was up 0.7 per cent at $190.51. – Additional reporting: Bloomberg, Reuters