Markets rose around the globe yesterday, as China signalled wider policy backing for economic recovery, with an increase in stimulus to support growth in the world’s second- largest economy.
DUBLIN
Index heavy-weight CRH was off on the day, giving up 3 cent or 0.2 per cent to cap the Iseq’s gains.
The Dublin market finished up at 3,300.21, up by 16 points or 0.5 per cent.
Food group Kerry was also weak on the day. It fell back by 22 cent, or 0.5 per cent, to close down at €40.28.
Tullow Oil gave up 45 cent, or 2.8 per cent to close down at € 15.50 as vice president of African business Tim O’Hanlon said at a conference in Rwanda that oil output from Uganda would be delayed.
Elsewhere, Irish names were largely in the black.
With its US peer NCI bullish on its prospects for 2013, Kingspan was in advance.
It gained 19 cent or 2.4 per cent to finish up at €8.15, while Glanbia edged upwards by 4 cent to close up by 0.5 per cent at €7.90.
Paddy Power was also strong on the day. It added 50 cent, or 0.9 per cent, to advance to €59.15.
Ryanair gained 10 cent, or 2.1 per cent, to climb to €4.94, while the Grafton Group, added almost 10 cent late in the day to close up by 2.7 per cent at €3.73.
LONDON
UK stocks rallied to a six-week high, on the back of news of economic support in China. The FTSE 100 Index advanced by 23.04 points, or 0.4 per cent,to 5,892.08 at the close in London, its highest level since October 19th.
The advance was led by mining companies, with Vedanta Resources and Rio Tinto both gaining more than 2.5 per cent as copper rose.
Tesco rose by 3.3 per cent to 337.45 pence, the most in 14 months, as the UK’s largest grocery company said it is reviewing its US Fresh and Easy business and that Tim Mason, the unprofitable unit’s head, will leave.
HSBC gained 1.2 per cent to 644.1 pence, the highest since May 13th, 2011. The bank agreed to sell its stake in China’s Ping An Insurance to Thai billionaire Dhanin Chearavanont for $9.4 billion as Europe’s biggest bank by market value moves to revive profit and boost capital.
EUROPE
European stocks rose to an 18-month high, despite a report that showed euro area manufacturing and services output shrank for a 10th month.
The Stoxx Europe 600 Index had risen 0.2 per cent to 276.91 at the close of trading. France’s CAC 40 and Germany’s DAX each added 0.3 per cent.
“Investor sentiment is improving and the market is receptive for positive news, such as the news out of China,” Otto Waser, chief investment officer at Research and Asset Management AG in Zurich said.
“There’s still a wall of worry regarding the fiscal cliff that causes investors to be cautiously positioned which implies room to increase equity allocations.”
Banco Espirito Santo rose by 2.6 per cent to 83 cents and Commerzbank added 1.4 per cent to €1.41.
Valiant Holding rallied 6 per cent to 100.1 Swiss francs, the biggest jump since June 1999, after the bank confirmed it’s in takeover talks with Berner Kantonalbank.
US
US stocks rose, after a two-day drop in the Standard and Poor’s 500 Index, as investors watched developments in budget negotiations in Washington amid better-than-forecast economic reports.
Citigroup gained 5.1 per cent after announcing it will take a pretax charge of about $1 billion as part of a plan to do away with more than 11,000 jobs. The plan will eliminate about 1,900 jobs in the institutional clients group, the financial services group said.
Facebook rose 0.7 per cent to $27.64, ahead of the social-networking company’s entry on the Nasdaq-100 Index next week.
