ISEQ benefits from investor confidence

DUBLIN’s ISEQ index shrugged off its negative start to the week, with a near 1.5% rebound yesterday; as European markets — in general — benefited from hopeful investors unwilling to be put off by negative soundings coming from the IMF and a credit ratings downgrade for Italy.

Ratings agency, Standard and Poor’s (S&P) yesterday slightly downgraded Italy; after having had the country on alert since May; adding that the outlook for the country’s growth was worsening and the government was exhibiting little sign of solving its problems.

Elsewhere, a statement by European Competition Commissioner, Joaquin Almunia, that more European banks may need to be recapitalised; and IMF fears that the eurozone crisis and the time it’s taking for the US to address its own deficit could hamper global economic growth further, threatened to hit markets.