Markets rise after war in Libya ends

IRISH stocks ended the day in positive territory yesterday as stocks around Europe reacted favourably to news of an end of the war in Libya.

The ISEQ index ended the day up 0.8% while in Britain stocks advanced, snapping a three-day losing streak. The FTSE 100 rose 1.1%.

There is speculation the Federal Reserve may this week signal additional stimulus measures. Also boosting markets was the prospects for energy companies with the end to the war in Libya.

On the Irish market, Bank of Ireland was up just over 2% to 9 cent while Irish Life and Permanent was up 6.6% to 4 cent. CRH climbed 1.6% to €11.29.

Also yesterday the European Central Bank said it spent less on government bonds last week as yields fell in Italy and Spain. The ECB said it settled purchases worth €14.3 billion in the week through August 19, down from the €22bn it spent the previous week.

In further news the Organisation for Economic Cooperation and Development (OECD) found that growth in leading world economies slowed for the fourth consecutive quarter, gaining just 0.2% in the three months to June.

In the April-June period, output of the 33 countries in the OECD grew 0.2% after 0.3% in the first quarter.

“This is the fourth consecutive quarter of slower growth,” the OECD said, noting a widespread slowdown in developed economies.

In Germany the central bank confirmed its 2011 economic growth forecast of “around 3%” but noted risks to the outlook.

The benchmark Stoxx Europe 600 Index rose 0.8% at the close in London yesterday, having earlier lost the same amount. The gauge retreated 6.1% last week.