Tuesday, October 01 09:02:31
The ISEQ is steady this morning at 4,254, up 16 points as markets take the US shutdown in their stride.
Davy Stockbrokers takes heart from Irish stats this week:
Stock indices fell on Monday. The Euro Stoxx 50 fell by 0.9pc and the S&P 500 by 0.6pc. Italian shares hit a three-week low after Silvio Berlusconi's party withdrew its ministers from cabinet. Sentiment remained weak through the day as it became increasingly clear that a partial US federal government shutdown was likely.
Stock index futures prices for European indices are up slightly this morning, suggesting that the news that Democrats and Republicans have failed to avert a government shutdown was already priced in. The US dollar fell against the euro to $1.358 and to $1.625 against the pound sterling, the weakest levels since January 2013.
PMI surveys for Europe are released this morning, following the news overnight that the Chinese PMI rose to 51.1 in September, up marginally from 51.0 in August. The US ISM manufacturing survey will be released this afternoon. However, other statistical releases, such as Friday's key US non-farm payrolls numbers, could now be in doubt due to the federal government shutdown.
Yesterday, the Irish consumer confidence survey for September rose to its highest level since 2007. The survey reading hit a fresh high of 73.1, up from 66.8 in August, led by the expectations component. This positive news follows on from last week's retail sales data showing spending recovering through the summer months. Moreover, this morning, the Irish manufacturing PMI survey for September rose to 52.7, above the 50 no-change level and up from 52.0 in August. So, the timelier monthly indicators of Irish economic activity continue to point to a firming recovery in the second half of 2013 according to Davy Stockbrokers.