Global stocks climb despite trade tensions
Iseq ends week higher in post sell-off rally
Cider-maker C&C had a strong close, ending the session 2% higher at €3.24
Global stocks climbed as markets delivered an upbeat end to a quarter that has seen equities hit by escalating trade tensions .
Investors are looking for reasons to cheer at the end of a volatile quarter. European Union leaders wrapped up a two-day summit in Brussels, after negotiating late into the night on measures to stem the flow of migrants into the region and spread the burden of handling those who do come. The focus on Friday was on efforts to shore up the euro area.
But equity advances were tempered by a report US President Donald Trump wants to withdraw from the World Trade Organisation, though his treasury secretary walked that back.
The Irish market ended the week higher as markets rallied following a sell-off on Thursday. The Iseq closed at 6,982.83, up less than half a per cent over the day.
Traders said it was a relatively quiet day for trading, with banks a bit weaker following this week’s news on capital buffers. AIB ended the session off less , while Bank of Ireland was down marginally, ending the session at €6.68.
C&C had a strong close, ending the session 2 per cent higher at €3.24.
Ryanair also gained back some of the ground it gave up on Thursday as weak markets and the threat of air traffic control strikes in France hit its shares. The company closed the week at €15.81, 2.7 per cent higher over the day.
Smurfit kappa rose 1.7 per cent in line with its peers, closing at €34.70.
Kerry Foods was 1.5 per cent lower after a strong run this week, with traders noting there was some profit-taking occurring.
Rises among miners and banks lifted Britain’s top share index on Friday as worries over global trade eased, while the index enjoyed its best quarter in five years. The blue chip FTSE 100 index ended the session up 0.3 per cent at 7,636.93 points, while mid caps gained 0.7 per cent.
The FTSE joined in a broader rally among European indexes as jitters over global trade were quelled as China further eased foreign investment curbs on Thursday. The FTSE didn’t quite manage to make back Monday’s losses, however. Though the FTSE ended June with a modest 0.5 per cent loss, the second quarter shaped up to be the index’s best since 2013’s first quarter, up over 8 per cent.
Miners Anglo American, BHP Billiton and Antofagasta all rose between 0.9 per cent and 3.6 per cent, boosted by a rise among metals prices. Banks HSBC and Lloyds rose 0.1 and 0.8 per cent respectively. Shares in battered Micro Focus were the biggest gainers, up nearly 4 per cent though the stock remains down around 47 per cent so far this year.
European equities pared a month loss with a rally that topped 1 per cent. Ten-year Treasury yields held near 2.84 per cent, roughly where they ended May.
The Stoxx Europe 600 Index advanced 1.2 per cent, while Germany’s DAX Index surged 1.2 per cent. The pan-European FTSEurofirst 300 index rose 1.13 per cent. The euro was set for its strongest day in a month after leaders at an EU summit reached an agreement on migration, rising 0.8 percent to $1.1658. The agreement eased a threat to German chancellor Angela Merkel’s ruling coalition over the issue.
The S&P 500 Index headed for a third straight monthly gain, buoyed on Friday by big banks that promised to return record amounts to shareholders. It rose 0.9 per cent to 2,740.55 at 11.50am, and is up more than 1 per cent in June.
Bank shares jumped after US lenders cleared the second part of the Federal Reserve’s stress test, pushing the sector 0.88 per cent higher after it broke a 13-day losing streak on Thursday, and helping US stocks to recover some losses.
Nike also pushed US benchmark indexes higher after the world’s largest sneaker-maker surged as much as 11.5 percent to a record peak on a strong earnings report.
The Dow Jones Industrial Average rose 276.37 points, or 1.14 per cent, to 24,492.42. the S&P 500 gained 25.57 points, or 0.94 per cent, to 2,741.88 and the Nasdaq Composite added 66.24 points, or 0.88 per cent, to 7,569.92. – Additional reporting: Bloomberg, Reuters