ISEQ higher on strong US close

Dublin's ISEQ was higher this morning on the back of a strong US close last night. At 12:10 the index was up 18.31 points at 2,915.95.

Volumes were relatively light, however.

Financials were pretty much flat, despite a strong rally in financial stocks across Europe on the back of BNP Paribas quarterly results. At 12.10 pm AIB was trading down 1.3 per cent at €1.11. Irish Life & Permanenet had added almost a half a percent to €2.78.

There was little market response to Bank of Ireland's announcement that it has changed its fiscal year, and will not be publishing an interim management statement this week as expected. It was flat at €1.30 this lunchtime.

Food and Beverage stocks made gain this morning. By 12.15 C & C had gained 3 per cent to €2.82, Greencore had added 2 per cent to €1.34 while Kerry Group was up just over 1 per cent at €21.81.

Index heavyweight CRH also made advances, trading at €17.12 at 12. 20 pm, a gain of 1.5 per cent.

Markets across Europe were higher today, on the back of strong banking stocks.

Britain's top share index was up 0.6 per cent by midday on Wednesday as financials and miners rose, bolstered by growing confidence on the global economic outlook.

By 1148 GMT the FTSE 100 was up 30.14 points, at 5,274.20, touching a two-week high after it added 1.5 per cent on Tuesday.

Adding to strong gains on Tuesday, Barclays gained 2.2 per cent while HSBC, Standard Chartered, Royal Bank of Scotland and Lloyds Banking Group added 1.2-2.0 per cent. Banks were also supported as French lender BNP Paribas beat forecasts with fourth-quarter results.

In Frankfurt the Dax was up 53 at 5,645 at 12. 20 pm, while the Paris CAC was up 56 at 3,725 a gain of 1.5 per cent.

Meanwhile US stocks posted their biggest daily percentage gain in three months yesterday after strong revenue from drugmaker Merck and regional manufacturing data instilled confidence in the economic outlook.

Asian stocks also posted solid gains overnight. Asian stocks advanced the most since November and emerging-market currencies rallied as corporate earnings beat expectations and reports signaled the global economy is recovering.

Japan’s Nikkei 225 Stock Average advanced 2.7 per cent. Australia’s S&P/ASX 200 Index rose 2.2 per cent and Hong Kong’s Hang Seng Index jumped 1.5 per cent.

Additional Reporting: Reuters