There was little change at the close on European markets yesterday, with shares trading close to 22-month highs. Markets rose in anticipation of the interest rate decision by the European Central Bank.
The ECB kept its benchmark rate at a record low of 0.75 per cent in a unanimous decision by the governing council, while the Bank of England also left its key interest rate unchanged and refrained from expanding its stimulus plan.
“A gradual recovery should start” later this year as the ECB’s measures work their way through the euro-zone economy, ECB president Mario Draghi said.
DUBLIN
The Iseq finished down marginally, having traded higher in the middle of the afternoon, in tandem with the pattern of markets across Europe
Bank of Ireland advanced 3 per cent to 14 cent, while there were also gains for paper and packaging group Smurfit Kappa, which rose 2.1 per cent to €9.91, and Ryanair, which nudged up 0.4 per cent to €5.26.
Grafton advanced 2.9 per cent to €4.30, as investors continued to digest a trading statement released on Wednesday in which the owner of the Woodies DIY and Atlantic Homecare said it expects to announce profits of at least €70 million when it publishes its 2012 results in March.
Recruitment group CPL Resources surged 9.5 per cent to €4.05 after a trading update from sector peer Hays pointed to “opportunities for growth” in some areas of the market.
Building materials group CRH closed down 0.3 per cent at €15.02, while pharmaceutical company Elan declined 3.1 per cent to €8.13.
LONDON
The FTSE 100 index of blue-chip shares finished up only fractionally on the previous session’s close, but during the day traded at the highest level since May 2008, while volumes were higher than average.
FTSE 100 companies are trading at 15.6 times reported earnings, the highest since December 2010, according to data compiled by Bloomberg.
Tesco advanced 1.8 per cent to 355.4 pence after the company said sales growth was the strongest since 2010.
However, it was a poor day for Marks and Spencer, which initially dropped 2.4 per cent to 368.8 pence after the retailer missed quarterly sales estimates during the key Christmas period.
Associated British Foods, which owns the clothing chain Primark, declined 1.7 per cent to 1,520 pence.
EUROPE
National benchmark indexes rose in 10 of the 18 western European markets, with France’s CAC 40 retreating 0.4 per cent and Germany’s DAX declining 0.2 per cent.
Richemont, the world’s biggest luxury jewellery maker, retreated 2.1 per cent to 76 Swiss francs after Tiffany said full-year profit excluding some items will be at the lower end of its previous forecast of $3.20 to $3.40 a share.
Sanofi, whose Ambien drug uses zolpidem, declined 0.7 per cent to €73.34 after the US Food and Drug Administration lowered women’s recommended dosage of sleep aids containing the ingredient.
CaixaBank, the Spanish lender that yesterday sold €1 billion of three-year senior debt, fell 5.5 per cent to €2.98 after rising 12 per cent on Wednesday.
Nokia surged 11 per cent to €3.32. after reporting fourth-quarter profitability for its handset business that beat estimates.
US
Stocks in New York climbed in early trading on optimism about global growth spurred by stronger-than-expected exports in China, the world’s second-biggest economy. Equities hovered around a five-year high as financial and energy stocks gained.
Bank of America gained 2.6 per cent to $11.73, while Morgan Stanley was up 3.2 percent at $20.24, one day after sources said the bank plans to cut jobs. – (Additional reporting: Bloomberg / Reuters)
