Markets edged higher across as banks pick up momentum

Markets edged higher across Europe Monday, with banks picking up some momentum during the session.

Dublin

In Dublin, the Irish Stock Exchange saw a slight rise, up less than half a percentage point to finish at 5,884. Among the main movers was Bank of Ireland, which added around 4 per cent to end at 19.1 cent. Having been under pressure of late, traders said it had caught some of the momentum that carried European banks higher.

Dalata also saw a shift higher, gaining 6.5 per cent to end at €4.10 in what was described as decent progress despite lighter volume.

Paddy Power Betfair inched 1 per cent higher to €108.95, while Ryanair ended the day weaker after a strong start. Traders noted there was profit-taking after the airline outperformed its peers last week, leading to a 1.6 per cent cent fall Monday to €11.84.

London

Britain's blue-chip FTSE 100 index edged up to touch its highest level in more than 13 months on the back of gains in mining stocks and in Barclays, which was boosted by an upgrade.

The index ended 0.2 per cent higher at 6,809.13 points, having hit its highest level since June 25th last year earlier in the session at 6,829.47.

Analysts said the market also got some support from a survey from card company Visa UK saying that British consumer spending picked up last month, bucking other signs that Britons have become more cautious since June, when they voted to leave the European Union.

Miners were the top sectoral gainers, with that index rising 2 per cent. BHP Billiton, Anglo American, Rio Tinto and Antofagasta rose between 1.7 to 3.3 per cent following a rally in the price of key industrial metals and iron ore.

British bank Barclays also rallied, climbing 3.6 per cent after Exane BNP Paribas upgraded its rating on the lender to "outperform" from "neutral".

British banks, up 2 per cent on the day, had slumped after Britons voted on June 23rd to leave the European Union, but are now only a shade below their pre-Brexit level.

Europe

European shares were little changed. A gauge of banks was among the best performers while healthcare posted the biggest decline on the index.

Optimism that central banks will do what’s needed to protect economic growth and contain the fallout from the UK’s decision has sparked a tentative return of bullish sentiment, albeit amid low-volume trading.

The Stoxx 600 gained 0.1 per cent to 341.57 at 4.31pm in London, after rising as much as 0.5 per cent.

Germany's DAX Index advanced 0.7 per cent as data showed industrial production increased in June more than forecast. The gauge was also supported by gains of at least 2.8 per cent in Commerzbank and Deutsche Bank.

New York

The S&P 500 index failed to hold on to its gains after opening at a record high as a drop in healthcare stocks offset the impact of higher oil prices and a strong jobs report. The S&P 500 healthcare index lost 1.14 per cent, the most since June 27th.

However, oil prices rose nearly 3 per cent after a report in the Wall Street Journal that some Opec members had called for a freeze in production.

The S&P and the Nasdaq closed at record highs on Friday after data showed that the US economy added 255,000 jobs in July, way more than 180,000 that analysts had estimated.

“You know the old saying, buy on the rumour, sell on the news, so I wouldn’t say today’s movement is particularly surprising,” said Melissa Brown, senior director of applied research at Axioma in New York.

“The markets have been up a lot so it seems like the employment report has already been reflected in stock prices.”

At 11.09am ET (3.09pm GMT), the Dow Jones Industrial Average was down 2.81 points, or 0.02 per cent, at 18,540.72. The S&P 500 was down 0.39 points, or 0.02 per cent, at 2,182.48. The Nasdaq Composite was down 8.12 points, or 0.16 per cent, at 5,213.00.

Additional reporting: Bloomberg, Reuters