Iseq gains as FTSE held back in thin trading

European stock markets rose, helped by gains in the banking sector, although weaker mining share prices held back the London market and trading activity was thin. The pan-European FTSEurofirst 300 index was 1.5 per cent higher at its close while the euro zone’s blue-chip Euro STOXX 50 index advanced 1.8 per cent.

With many traders away for the Christmas holiday season, trading volumes were just over half of the FTSEurofirst’s three-month daily average.

Dublin

The Iseq reopened after the Christmas break, climbing 1.4 per cent on a day marked by extremely light trading volumes. Building materials group CRH, its biggest stock, advanced 1.2 per cent to €26.77, while Ryanair posted a 1.7 per cent gain, finishing at €15.28.

On a quiet but positive day, food group Kerry rose 3 per cent to €76.76, while cheesemaker Glanbia closed at €17.20, up 1.8 per cent and drinks group C&C added 1.1 per cent to €3.81.

There were also gains for Irish Continental Group, which rose 2.2 per cent to €5.47, insulation-maker Kingspan, which closed up 2 per cent at €24.49, and paper and packaging group Smurfit Kappa, which finished at €23.68, up 1.6 per cent.

London

Britain’s blue-chip FTSE 100 index was up 1 per cent at its close on its first day of trading since Christmas. The index underperformed bigger gains in Frankfurt and Paris as a result of falls for mining stocks, which account for 5 per cent of the FTSE’s overall market capitalisation.

The mining sector lost ground as the price of copper touched its lowest point in more than a week and aluminium fell on concerns about demand from China, the world's biggest consumer of metals. Anglo American led the miners lower, falling 6.3 per cent.

Energy stocks were little changed after an earlier drop, with BP losing 1.4 per cent and BG Group adding 1.9 per cent.

AstraZeneca contributed the most to gains with a 1.9 per cent advance. Hikma Pharmaceuticals rose 4.8 per cent, for the biggest increase on the index.

The FTSE is down by around 4 per cent since the start of 2015, underperforming a rise of 6 per cent on the pan-European FTSEurofirst 300 index.

Europe

European stocks trimmed their worst December drop since 2002, with Germany’s Dax index climbing 1.9 per cent and France’s Cac 40 adding 1.8 per cent.

Deutsche Bank rose 2.5 per cent following its move to sell its 20 per cent stake in China's Hua Xia Bank to insurer PICC Property and Casualty Co for up to 25.7 billion yuan ($4 billion).

Italian cable systems company Prysmian also outperformed, rising 3 per cent after announcing a new contract win in Bahrain.

Gains of 2.1 per cent or more in German companies K+S and Bayer meant chemical companies posted the best performance among industry groups.

Despite the positive day of trading, stocks are defying the historical trend of gains in the final month of the year, traditionally known as the Santa Claus rally. The Stoxx Europe 600 Index is down 4.1 per cent this month amid a disappointing increase in European Central Bank stimulus, along with the commodity rout.

US

US stocks advanced to a three-week high in early trading, helping trim the first annual loss for global equities since 2011.

Apple was up 1.5 per cent at $108.48 and was the biggest influence on the S&P and Nasdaq, while Google parent Alphabet rose 1.4 per cent to touch a fresh record high.

Amazon rose 2.9 per cent, its share price also hitting an all-time high of $694.90. The online retailer recorded more than 3 million new Prime memberships in the third week of December, indicating strong holiday season demand.

New data indicated consumer sentiment was improving, with the Conference Board’s index of consumer confidence for December up at 96.5, beating the 93.8 reading that had been expected.

The Standard and Poor’s 500 Index halted a two-day slide as all 10 main groups climbed, while oil rose above $37 a barrel amid forecasts for falling US stockpiles.

DuPont rose 1.8 per cent to $67.69 by 1.30pm in New York. The chemical company said it planned to cut about 28 per cent of its workforce in its home state of Delaware in early 2016 as it proceeds with a merger with Dow Chemical.

(Additional reporting: Bloomberg / Reuters.)