European real estate stocks surge, as global trading eyes strong finish

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Pan-European STOXX 600 jumps 1.2%, best daily performance in two months

The S&P 500 and the Dow hovered at levels seen more than a week ago on Friday, as investors took comfort from strong data.

Property rental company, Ires Reit rose by 6.7 per cent to 87 cent a share after it released a three month trading update on Friday. Ryanair dropped 0.14 per cent to €18.21. Dalata Hotels fell 1.69 per cent to €4.36 a share.Britain’s FTSE 100 recorded its biggest weekly gain in more than six months on Friday as a slide in sterling supported dollar earners, while banks came under pressure from weak business activity data.

The currency’s decline helped lift shares of UK-listed international firms such as AstraZeneca, Unilever and Reckitt Benckiser, which draw a large portion of their revenue overseas. Traders expect the Bank of England to hold interest rates next month, but see more cuts coming next year. They now expect about 0.72 per cent of cuts, compared with 0.67 per cent before the release of the data.German short-dated government bond yields and the euro tumbled to their lowest levels in around two years on Friday as markets ramped up European Central Bank interest rate cut bets after data showed a sharp decline in euro area business activity.

The domestically focused small-cap Russell 2000 index outperformed large-cap indexes with a 1.3 per cent rise. The index hit a more than one-week high and was set for weekly advances of nearly 4 per cent.

 

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