Markets anticipate ECB stimulus plan

Without any major advance, global markets hovered at elevated levels amid continued expectation in the investment community that European Central Bank chief Mario Draghi will eventually undertake a programme of quantitative easing easing to boost the moribund euro zone economy.

The Irish market gained 0.72 per cent to bring the ISEQ index 35.82 points higher, closing at 5,036.81. Dublin traders said a “decent market” reflected upbeat international sentiment, although the timing and scope of any ECB action remains uncertain.

Dublin

Bank of Ireland

gained 3.18 per cent to finish at 32.5 cent, with traders citing a “favourable” reference in a research note issued by

Merrill Lynch

as a factor in the rise. On a busy day for the stock, more than 205 million shares changed hands .

After a stark warning last week from Minister for Finance Michael Noonan on the overvaluation of the remaining freefloat shares in the nationalised Allied Irish Banks, its shares declined a further 5.41 per cent to close at 7 cent .

Following its recent profit warning, FBD shares closed down 2.73 per cent at €10.50. Irish Continental dropped 2.01 per cent to finish at €2.93.

Smurfit Kappa stock gained 1.11 per cent to finish at €18.20 and Ryanair, which continues to benefit from strong results, saw its stock advance another 1.25 per cent to finish at €8.667.

London

Britain’s top share index steadied near a two-month high as stronger banking stocks were offset by a fall in mining companies as metals prices weakened. Disappointing earnings from some companies also limited the upside.

Kingfisher fell 4 percent after Europe's biggest home-improvement retailer posted a drop in third-quarter profit, hurt by a weak French market and currency moves. The UK banking index, up 1 percent, was the best performer, on growing expectations the ECB will begin a quantitative easing programme in early 2015. Sentiment also improved after third-quarter US GDP estimates were raised to a 3.9 percent annual pace from 3.5 percent reported last month.

Europe

European stocks ended slightly higher as euro zone banking shares climbed on mounting expectation of more stimulus from the ECB.

The rise in financials was partly offset by losses in resource-related shares, hurt by a recent slump in crude oil and metal prices. BHP Billiton lost 1.7 percent, BP fell 1.1 percent and Total dipped 1.6 percent.

Crude prices fell again on Tuesday, down by more than $1 a barrel to near four-year lows, after a meeting between Saudi Arabia, Venezuela and major non-Opec oil exporters ended with no deal on curbing output before a summit tomorrow of the Organisation of the Petroleum Exporting Countries.

New York

US stocks were little changed, with major indices hovering at record levels after a pair of economic datapoints painted a mixed picture of the market fundamentals. A reading of consumer confidence unexpectedly fell to its weakest level since June, causing investors to take profits after a recent rally, though third-quarter economic growth came in much stronger than expected.

The commerce department raised its estimate of third-quarter gross domestic product to a 3.9 percent annual pace from the 3.5 percent rate reported last month. Separately, November consumer confidence fell to 88.7 from October’s revised 94.1. Expectations were for a reading of 96.

Market moves may be amplified this week by low volume, which is expected with some market participants out for the Thanksgiving holiday. The US stock market will be closed tomorrow and will close early on Friday.

Energy shares were the weakest performers of the day, down 1.3 percent alongside a 1.4 percent drop in the price of crude oil. The moves came ahead of an Opec meeting.