Quantitative easing hopes push European shares up

Optimism among investors that the European Central Bank will begin quantitative easing later this week pushed stock prices up to a new seven-year high. Data showing China's economic growth has slowed less than was feared also contributed to the forward momentum.

However, stocks in the US traded lower after the International Monetary Fund (IMF) cut its global growth forecast for 2015 by three-tenths of a percent to 3.5 per cent.

DUBLIN In Dublin, the Iseq dropped 0.1 per cent on a day of mixed fortunes for its biggest stocks.

Drinks group C&C fell almost 2 per cent to €3.28. The company issued a profit warning last week. Other fallers included insulation-maker Kingspan, which lost 2.25 per cent to close at €14.33, and Bank of Ireland, down 1 per cent to 30 cent

Aer Lingus, which has rejected two takeover approaches from International Consolidated Airlines Group over the last month, finished down 1.9 per cent at €2.37 during a reasonably active session for the stock. It is now trading below IAG's second offer for the company, which was valued at €2.40 a share.

On the Enterprise Securities Market for smaller companies, hotel group Dalata fell more than 4 per cent to €2.80.

However, building materials group CRH added 1 per cent to €20.50 and it was also a good session for fruit distributor Fyffes, up 3.4 per cent to €1.17, and Ryanair, which closed up 2.3 per cent at €9.95.

LONDON UK stocks advanced for a fourth day, with the FTSE 100 index of blue-chip shares closing up 0.5 per cent. Mining stocks boosted values overall as investors responded to better- than-expected Chinese economic data, although there was a tepid outlook from consumer goods group Unilever, which kept confidence in check.

Unilever dropped 0.6 per cent after reporting lower- than-expected underlying sales growth for the fourth quarter, due to its exposure to weak emerging markets.

Investors were relieved after data showed China's economy grew 7.4 per cent in 2014, barely missing the country's 7.5 per cent target. Mining groups Glencore and Anglo American rose 3.9 per cent and 2.9 per cent respectively.

EUROPE

France’s Cac and Spain’s Ibex index both rose 1.2 per cent, while Germany’s Dax advanced just 0.1 per cent. Greek stocks lost ground again, with Athens’ ATG index falling 1.2 per cent after two opinion polls showed anti-bailout opposition party Syriza moving further ahead of the ruling conservatives before Sunday’s election.

Danish stocks also underperformed, after Denmark’s central bank cut its certificate of deposit and lending rates by 0.15 percentage points to stop the crown strengthening.

NEW YORK

US stocks fell in early trade after the International Monetary Fund lowered its growth forecasts for 2015 and 2016, although the move spurred hopes that central banks would take more aggressive policy stances to accelerate economic improvement.

The lower forecasts implied less demand for fuel through 2016, contributing to another fall in crude oil, which put pressure energy stocks.

Oilfield services companies Halliburton and Baker Hughes both warned that a fall in drilling activity would hurt results in 2015, although the companies also reported better-than- expected fourth-quarter profits. Halliburton rose 0.7 per cent to $39.39 while Baker Hughes rose 0.7 per cent to $56.94.

Johnson & Johnson fell 3.6 per cent to $100.33 after forecasting lower earnings for 2015, as competition cut into revenue for some of its best-selling drugs.

Morgan Stanley reported a drop of 81 per cent in revenue from trading fixed-income securities, currencies and commodities, although earnings rose on a sharp drop in legal costs. Shares fell 1.3 per cent to $34.42. – Additional reporting: Bloomberg/Reuters)