Markets rise for third day amid ongoing turmoil in UK over Brexit

Wireless Group soars after Newscorp acquisition while Dalata and ICG both fall

World stocks rose for a third day although bond yields remained subdued, reflecting concerns about the global economy and expectations for more stimulus from central banks, as the Bank of England raised the prospect of more bond-buying.

Markets have regained their poise after a short bout of volatility following the UK's vote last week to leave the European Union, but concerns remain about the longer-term economic outlook and the potential for renewed turbulence.

Sterling reversed early gains as Bank of England governor Mark Carney said it would probably need to pump more stimulus into Britain's economy. Investors largely expect the bank to cut interest rates over the summer and ramp up its bond-buying programme. The news sent UK shares surging.


The Iseq finished up nearly 1 per cent at 5,642, roughly in line with bourses elsewhere.



Group saw its stock jump 70 per cent to €3.75 after Rupert Murdoch’s Newscorp announced the acquisition of the Belfast firm in a £220 million deal. The media giant will pay 315 pence a share for the radio-focused Wireless Group.

Hotel group Dalata, which has an exposure to the UK economy, fell 6.4 per cent to €3.65.

Similarly, Irish Continental Group, owner of Irish Ferries, shed 6.2 per cent of its value to close at €4.20.

After a rocky few days, Bank of Ireland traded flat at €0.18. Permanent TSB reclaimed some lost ground, however, closing up 4.8 per cent at €1.67.

Paddy Power Betfair traded down 1.6 per cent at €94.50. Ryanair, meanwhile, closed up nearly 3 per cent at €11.32.

Iseq heavyweight CRH rose 1 per cent to €26 after factory activity in the US midwest, where it does a significant amount of business, surged to its highest in almost 18 months.

LONDON Britain’s top share index closed yesterday at its highest level for 2016, having rebounded from a substantial sell-off in the wake of the vote to leave the EU. Despite turmoil in the markets following the referendum a week ago, Britain’s FTSE 100 index ended June up 4.4 per cent for the month, its biggest monthly gain since October.

It was helped by strength in its commodity sector and stocks with international exposure. The FTSE 100 was up 2.3 per cent at 6,504.33 points at its close.

Royal Bank of Scotland, down around 30 per cent since the vote, fell another 4.8 per cent after it was cut to "equal weight" from "overweight" by Morgan Stanley.

However, 3i Group rallied 8.5 per cent after it said it had no plans to dispose of its investment in a Dutch discount retailer. Mining companies Antofagasta, Anglo American and Glencore gained between 4.2 per cent and 5.1 per cent as the price of copper rose.


European shares fluctuated as investors assessed a two-day rally that helped the region’s equity benchmark recover about half of its post-Brexit losses.

Deutsche Bank fell 3.3 per cent after failing annual stress tests. Banco Santander, which also fell short of the Fed's requirements, slipped 2.5 per cent. Banca Monte dei Paschi di Siena paced losses in Italian banks as the government struggled to win support for its latest industry rescue plan.


Wall Street drifted higher in late morning trading yesterday as consumer staples stocks rose after reports that


cookies maker


had made a bid to buy Hershey. Hershey’s shares soared 18.6 per cent to $115.19, making it the top percentage gainer on the S&P 500. Mondelez was up 1.9 per cent.

All 10 major S&P sectors were higher, with the consumer staples index rising 1.43 per cent. PepsiCo and Philip Morris rose about 2 per cent. The three major indexes have recouped more than half of the losses suffered after a shock vote by Britain to leave the EU.

General Electric rose 1.3 per cent after Goldman Sachs raised its price target on it. – (Additional reporting by Reuters/Bloomberg)

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times