European markets boosted by strong economic data globally

European stocks rallied on Wednesday as earnings reports from German engineering and technology group Siemens and Swedish carmaker Volvo boosted industrial shares. Positive data from China and the US helped lift shares most sensitive to economic growth.

The Stoxx Europe 600 index had advanced 0.9 per cent at the close. The benchmark is rebounding after capping its worst three-day drop since the week before the US election amid investor jitters about some of US president Donald Trump’s decisions.

The more optimistic tone was underpinned by strong economic data globally, with US factory activity hitting more than a two-year high in January, while euro zone factories registered the fastest activity rate in nearly six years. China’s activity expanded for the sixth month, and Japanese manufacturing growth was the fastest in almost three years.

DUBLIN

The Iseq index joined in the rally, following two sessions of heavy losses, to advance almost 1 per cent to 6,455.96.

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Small-cap mining stocks were a particularly bright spot, with Ormonde Mining gaining 5.6 per cent to 1.9 cent and Kenmare Resources rising 4.9 per cent to €3.46, in line with renewed interest for the wider European sector, which had sustained its biggest two-day drop since November.

Other cyclical stocks were also back in demand, with Bank of Ireland rising 2.4 per cent to 25.4 cent and CRH moving 1.9 per cent higher to €32.82.

Ryanair increased by 2.5 per cent to €14.69 after the carrier announced a major expansion into Israel.

Irish housebuilder Cairn Homes rose as much as 2 per cent in London to €1.2775 as Davy turned more positive on the group's ability to meet its medium-term construction goals.

LONDON

The FTSE 100 index inched 0.1 per cent higher to 7,107.65.

Miners were also in demand in London, with BHP Billiton gaining 1.7 per cent and Rio Tinto rising by 0.8 per cent, with traders particularly buoyed by slightly-better-than-expected Chinese manufacturing data. China is a major buyer of industrial and precious metals.

Retailer Dixon lost 1.1 per cent on news that the group's founder and chairman, Charles Dunstone, is stepping down in April to become chairman of Talk Talk Telecom. Talk Talk jumped 7.6 per cent as its chief executive, Dido Harding, resigned following seven years in the role.

Shares in AG Barr rose 1.6 per cent after the Irn-Bru maker said cost controls and a bump in second-half trading have put it on track to meet full-year profit guidance.

EUROPE

Across Europe, the French CAC 40 and German DAX each rose by about 1 per cent, while Brent crude prices started to pare gains earlier in the session to trade 0.9 per cent higher at $55.99 per barrel after data pointed to another rise in US stockpiles, raising fears that US production could counteract Opec supply cuts.

Volvo rose 4.7 per cent after its fourth-quarter truck orders jumped and earnings beat estimates, while Siemens climbed 5.6 per cent after Europe's biggest engineering company raised its full-year outlook.

Finnish paper maker UPM-Kymmene was recovering from its biggest ever daily drop on Tuesday, up 6.3 per cent, while Swedish oil company Lundin Petroleum was up 2.9 per cent after its fourth-quarter earnings beat consensus.

Spanish bank BBVA was a weak spot, falling 1.4 per cent after it warned of a tougher business environment in Mexico this year while its largest market adapts to the policies of president Trump.

NEW YORK

The S&P 500 slipped into the red and the Dow gave back some gains in late morning trade on Wednesday.

However, the Nasdaq, which is more technology-heavy, was lifted by a 5.6 per cent rise in Apple after the company's strong earnings and iPhone sales.

Dow component Exxon slipped 1 per cent after a string of price target cuts by analysts. The oil major had reported results on Tuesday.

Gas company Oneok Partners jumped 25 per cent after its biggest shareholder said it would buy the rest of the company for $9.3 billion (€8.6bn).