Miners lift European shares on metals prices, euro zone growth
Irish market closes higher led by Ryanair, Paddy Power Betfair, CRH and Kerry
Ryanair outshone rivals such as EasyJet and IAG to close up 1.2 per cent to €19.46 on strong volumes. Photograph: Andrew Yates/Reuters
Miners and oil stocks led Europe’s major share indexes higher on Wednesday on the back of higher metals prices and improved euro zone GDP figures.
The pan-European STOXX 600 ended the session 0.7 per cent higher, its third day of gains after a sharp sell-off last week. Euro zone stocks and blue chips also jumped 0.7 per cent.
The Irish market outperformed many of its European counterparts, closing up 1 per cent at 6,853.23.
Airlines were in vogue on Wednesday across the continent, which was good news for Ryanair as it outshone rivals such as EasyJet and IAG to close up 1.2 per cent to €19.46 on strong volumes.
Bookmaker Paddy Power Betfair put in a strong performance, rising 2 per cent to €83.88, easily surpassing the likes of Ladbrokes and William Hill as it bounces back after slumping last week.
AIB climbed higher again, gaining 1 per cent to €5.12, having jumped from €4.86 on Monday. Bank of Ireland and Permanent TSB also rose, also both up 1 per cent to €7.18 and €1.93 respectively.
Other risers included Iseq heavyweight CRH, up 1 per cent to €30.18. Hotels group Dalata climbed 1 per cent to €4.90, while Kerry Group was up 1.8 per cent to €78.88
Britain’s top share index rose for the third day on the trot on Wednesday, boosted by gains among mining firms, though car insurer Admiral Group plummeted after reporting half-year results. The blue chip FTSE 100 index was up 0.7 per cent at 7,433.03 points at its close, while mid caps gained 0.8 per cent.
A rise among mining firms supported the index, with the sector adding around 17 points to gains. Glencore, Anglo American, Antofagasta and Rio Tinto all rose between 2.4 and 4.2 per cent, boosted by firmer copper prices. Among smaller companies, shares in Balfour Beatty jumped 6.4 per cent after the construction firm saw its half-year profit rise nearly 70 per cent thanks to a rebound in its UK construction business.
Silver miner Hochschild Mining slumped more than 18 per cent after reporting first-half profit down by more than a third.
A second-quarter profit disappointment weighed on Swedish food retailer ICA, down 6.5 per cent, while Danish healthcare product maker Coloplast dropped more than 6.2 per cent after its third-quarter organic growth fell short.
Fiat and Exor jumped 2.6 and 2.1 per cent respectively, extending gains from Monday when a media report said a Chinese company may be interested in the carmaker. Swedish healthcare firm Elekta gained 2.6 per cent after JP Morgan upgraded it to “overweight”.
US shares rose Wednesday as investors bet that weak housing data could slow rate hikes, while the dollar gained on the euro as hopes ebbed for a monetary policy change in Europe.
The S&P and the Dow rose higher in late morning trading on Wednesday on gains from consumer discretionary stocks.
Home Depot’s shares rose 1.7 per cent and provided the biggest boost to the S&P and the Dow, after a slump on Tuesday following the company’s earnings. Target rose as much as 3.9 per cent, leading the gainers on the S&P consumer discretionary index, after the company’s quarterly profit and same-store sales that beat estimates.
Among stocks, Urban Outfitters rose 19.44 per cent after the apparel retailer reported quarterly profit and sales that beat estimates, leading to multiple price target raises. Amazon was down 0.39 per cent after US president Donald Trump tweeted the retail giant was doing “great damage” to tax-paying retailers.
Additional reporting: Reuters