Quiet morning for Irish market ends on positive note

European stocks advanced today, following their biggest rally in seven weeks, as investors assessed a report that showed the US economy created fewer new jobs last month than forecast.

The Iseq index of Irish shares outperformed London’s FTSE, France’s CAC and Germany’s DAX, gaining 65 points or 1.4 per cent to close at 4,829.

One Dublin analyst said the market was “quiet in the morning as investors awaited the publication of the non-farm payroll report in the US” but ended the day on a positive note.

Ryanair, CRH, Smurfit Kappa and Bank of Ireland were among the most traded stocks in Dublin.

CRH outperformed, soaring 4 per cent to €19.82, on the back of good news from construction stocks in the US yesterday.

Drinks company C&C also jumped by nearly 4 per cent, finishing the day at €4.54.

Some 5 million Ryanair shares were traded in Dublin with the stock closing near flat at €7.20.

Britain’s top shares rose for a third straight session today, led by mining companies, which were helped by an upbeat outlook from steelmaker ArcelorMittal.

UK equities sold off after a disappointing US jobs report, then recovered on confidence that shares will continue to benefit as global economic growth picks up speed.

Data showed that US employers hired fewer workers than expected in January. Non-farm payrolls rose by 113,000, compared with a consensus forecast of 185,000, although the unemployment rate hit a five-year low of 6.6 per cent.

The dollar see-sawed in the wake of the report. After a sharp decline against the euro in the immediate aftermath, the dollar gained back some ground, but still found itself weaker this afternoon. The euro was up 0.18 per cent to $1.36140, after having dropped back from its session high $1.36490 on the EBS trading platform.

The FTSE 100 closed up 13.40 points, or 0.2 per cent, at 6,571.68 points. It had dropped to a session low of 6,540.81 just after the jobs report was released.

“There are algos that sell immediately after the payrolls number if it’s weaker than expected, but then people look at the overall picture, which is not that bad, and buy back on the dips,” said Mike Reuter, a broker at Tradition.

Supporting the view that the figures were not as bad as they first appeared, Dallas Federal Reserve Bank President Richard Fisher told CNBC that weather probably held down employment in both December and January.

Cyclical miners advanced, supported by reports from steelmakers ArcelorMittal and SSAB.

The UK mining sector, headed for its second straight week of gains, is up nearly 2 per cent for the year after falling 16 per cent in 2013.

Sweetener maker Tate & Lyle advanced 1.8 per cent. Traders cited a double upgrade by JPMorgan, to “overweight” from “underweight”, as the catalyst for the move. (Additional reporting: Reuters)