US building data boosts CRH as Iseq gains over 2%

Iseq: 2,691.30 (+61.74) Settlement date: October 27thMOST EUROPEAN stock markets made gains yesterday as a quiet morning turned into an afternoon of buying activity, described by one Dublin-based dealer as "a decent rally".

The Iseq index closed up 2.35 per cent, with the FTSE climbing 1 per cent.

Economic data from China showing a pick-up in manufacturing activity buoyed mining stocks across Europe, while euro zone banks advanced amid further chatter on bank recapitalisations and progress towards a deal on the debt crisis, which is expected to be finalised at tomorrow’s summit.

Caterpillar, the world’s largest maker of heavy equipment, announced that 2011 was on track to be a record one for sales and profits. The US-based company’s upbeat results were a factor in the positive trajectory of markets.

The Iseq’s performance was driven by building materials group CRH, which closed up 5.6 per cent at €14.16. Its stock has been boosted by the anticipation that the US Senate will next week decide on an unchanged budget for highway construction and maintenance. This would be positive for CRH, which derives 50 per cent of its business from the federal programme.

Ryanair closed up 2.6 per cent at €3.29 on a day when it was the subject of a prominent story in the Financial Timesoutlining its "ambitious plans" to increase its number of annual passengers from 70 million to more than 130 million over the next decade.

Bank of Ireland rose 2 per cent amid the more positive sentiment on the day towards banking stocks. It finished at 10 cent.

Elsewhere, paper and packaging Smurfit Kappa, which tends to outperform the market on positive days and underperform it on negative days, closed up 3.7 per cent at €4.51.

Drinks group C&C closed down 1 per cent at €2.81.