PRODUCT PROFILE

Latest Dublin Prices

NAME
LATEST
CHANGE
Aer Lingus 1.43 -0.01 more
BoI 0.30 0.00 more
CRH 17.87 -0.07 more
Glanbia 11.37 0.06 more
Greencore 0.64 -0.02 more
Ind. News 0.12 0.01 more
Ryanair 7.41 0.02 more

 

ISEQ gains after ECB rates move

Thursday, June 05 17:46:24

The ISEQ rose modestly today after the ECB dropped its base interest rate to a record low and moved its deposit rate in to negative territory.

At the close, the index was up 15.11 points to 4,950.96.

The ECB launched a raft of measures today to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds. The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro's exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight. It stopped short of large-scale asset purchases known as quantitative easing for now, but ECB President Mario Draghi said more action would come it necessary. Draghi outlined a four-year 400 billion euro scheme giving banks that have been holding back credit due to looming stress tests an incentive to increase lending to businesses in the euro zone.

At home, shares in Ryanair fell 4c to E7.44. Its rival in Britain, easyJet has delivered another strong set of passenger numbers for May, with passengers growing by 8pc yoy to 6.1m. Load factor was up 1.3pts to 89.4pc, on a 6.4pc capacity increase to 6.8m seats. On a rolling 12 month basis, passenger numbers increased 4.6pc to 62.8m with load factor up 0.7pts to 89.9pc. Through the first eight months of easyJet's financial year, passenger growth is trending at +4.4pc, close to management's guidance of +5pc for FY14. Hence, we expect strong passenger growth to continue into the rest of the financial year, with management guiding that passengers should grow by 6.7pc in H214.