Positive jobs news in US lifts markets
Eurostoxx 50:2,547.15 (+2.33%) Paris CAC:3,492.46 (+0.49%) Frankfurt DAX:7,363.85 (+0.38%)
EQUITY MARKETS in Europe flirted with two-week highs yesterday after a report revealed that US companies took on more employees than forecast last month.
The US labour department report showed that a net 171,000 workers were added to payrolls, adding to a 148,000 gain in September. This proved welcome news for investors as well as for US president Barack Obama’s election campaign.
The publication gave markets a lift, although enthusiasm waned at the close of trading and some analysts forecast a more conservative approach to the markets at the start of the next week as the final stages of the US election play out.
INVESTORS’ ATTENTION was focused on Ryanair ahead of the release of its interim results on Monday, with dealers reporting a substantial and “lively” two-way flow in trading, with eight million shares changing hands on the Dublin and London markets.
It closed up almost half a per cent at €4.55, having traded higher earlier in the session.
Overall, the Iseq enjoyed a positive day, finishing up 1 per cent – a gain that outperformed the major European indices.
Cement-maker CRH, the biggest stock on the index, attracted buyers amid generally good sentiment in the building materials sector, closing up 1.75 per cent at €14.90. Bank of Ireland also had a good day, finishing up 3 per cent at 10 cents, while drinks company CC joined in the mood, closing at €3.80, up 2.2 per cent.
Food group Kerry was the only notable stock to come under slight pressure. It closed down 1.6 per cent at €39.65 as sellers buoyed by positive sentiment on the equity markets dropped the stock for less defensive names.
THE FTSE 100 index of blue-chip shares closed little changed, following Thursday’s rally. The index rose 6.63 points, or 0.1 per cent, to 5,868.55 at the close in London.
Tullow Oil gained 2.7 per cent to 1,445 pence after analysts at JP Morgan Chase raised its recommendation for the stock from neutral to overweight.
Bumi surged 14 per cent to 283 pence on reports Nathaniel Rothschild will form a group to counter the Bakrie family’s buyout offer for the Indonesian mining company. Mr Rothschild, who quit Bumi’s board last month, has held talks with potential partners and the company’s existing shareholders to fend off the buyout offer.
Royal Bank of Scotland fell 2.1 per cent to 281.3 pence after posting a loss. The taxpayer-owned lender reported a £1.38 billion loss in the third quarter after setting aside more money to compensate customers who were wrongly sold loan insurance.