Paddy Power Betfair gains as European uptick lifts Iseq

Stocks rose as markets were lifted by strong jobs data coming from the United States, bringing broad-based gains to European markets and causing US indices to tick upwards.

The jobs data was better than expected and wages picked up, which should bolster expectations of an acceleration in economic growth.

Dublin

The Irish index of shares rose almost 2 per cent to finish at 5,860, with the Iseq feeling the benefit of the wider European uptick.

Paddy Power Betfair proved to be the standout stock of the day, gaining 3.3 per cent during the session to end at €107.75. Although there was little news to drive the rise, Ladbrokes and William Hill both published results this week that revealed good trade.

Traders noted that the shares had previously been subject to an aggressive sell-off, with the current rally addressing some of this impact.

Bank of Ireland ended a rollercoaster week at 18.3 cent, 1.6 per cent higher, bringing the stock back near to the level it closed at last Friday.

CRH ended the day at €27.02, some 1.2 per cent higher. It had support from some of its sector peers, with LafargeHolcim reporting a rise in earnings of 2.6 per cent and revealing plans to divest more of its assets.

Airline Ryanair was broadly in line with its European peers, gaining just over 3 per cent to finish strongly at €12.045 for the session.

London

Britain's blue-chip share index climbed to its highest level since July 2015, led by a rise in housebuilders and miners, although Royal Bank of Scotland slumped after reporting a big loss in its first-half results.

The benchmark FTSE 100 extended gains after better-than-expected US jobs data and ended 0.8 per cent higher at 6,793.47 points. The mid-cap FTSE 250 also hit this year’s high and finished 1.3 per cent higher.

The market gathered momentum after the Bank of England cut rates for the first time since 2009 on Thursday and unleashed billions of pounds of stimulus to mitigate the economic impact of Britain's vote to leave the European Union.

Persimmon, Berkeley, Barratt Developments and Taylor Wimpey rose between 1.9 and 3.1 per cent. Brick maker Ibstock, a mid-cap company, soared 7.7 per cent after reporting a set of well-received results, quelling fears about the impact of the UK's Brexit vote.

On the downside, Ulster Bank parent RBS slumped 7.2 per cent, the worst performer in the FTSE 100 index, after its first-half losses widened and the part-nationalised bank abandoned its plans to turn its William & Glyn unit into a standalone bank.

Europe

European shares rose, helped by solid earnings from companies including cement making group LafargeHolcim. The pan-European Stoxx 600 index ended up 1.1 per cent, extending gains on the US data, although the index posted its first week of declines in four.

LafargeHolcim rose 5 per cent after it reaffirmed its guidance and beat quarterly profit forecasts.

Hugo Boss jumped 7.4 per cent after the German fashion house beat forecasts for quarterly operating profit and new chief executive Mark Langer said he would close about 20 more stores as a cost-cutting drive appears to be paying off.

The Stoxx 600 bank sector index rose 2.2 per cent, clawing back some ground following a slump at the start of the week after industry stress tests fuelled new concerns over banks’ capital levels when the industry is struggling to grow with ultra-low interest rates.

New York

US stocks surged, with the S&P 500 touching a record intraday high after a second straight month of robust labour market data boosted optimism about the economy.

The US Labor Department report showed that non-farm payrolls rose by 255,000 in July, far exceeding estimates of 180,000. While unemployment rate remained unchanged at 4.9 per cent, it stayed below the 5 per cent mark associated with full employment.

The S&P 500 touched 2,180.78, its ninth record intraday high since July.

By 3pm Irish time, the Dow Jones Industrial Average was up 151.38 points, or 0.82 per cent, at 18,503.43. The S&P 500 index was up 15.55 points, or 0.72 per cent, at 2,179.8. The Nasdaq Composite was up 55.06 points, or 1.07 per cent, at 5,221.30. Seven of the 10 major S&P 500 sectors were higher, led by a 1.52 per cent surge in the financials index. The sector was trading at its highest level since the start of the year.

Banks, which stand to gain if the Fed raises rates, were among the biggest drivers of the S&P. JPMorgan, Bank of America and Citigroup rose about 3 per cent. – (Additional reporting: Reuters)