Irish shares rally before UK mini-budget

Ireland joined in the world stock market rally, which has been driven by hopes that the US economy will grow faster in the coming years, while traders eyed today’s UK mini-budget, which may sanction increased spending on infrastructure.

Financial, hotels, property, and construction firms rose, as Bank of Ireland and Dalata posted gains, and most food groups also posted increases.

Shares in construction giant CRH, which is seen as having the most to gain of Irish-listed stocks should US president-elect Donald Trump sanction a large increase in US spending, were up slightly.

CRH shares have, however, risen strongly since the November 8 US presidential election, and posted gains this year of over 18%. Kingspan shares rose sharply, up about 3.6% on the day.

In London, analysts said the UK’s autumn statement delivered later today by chancellor Philip Hammond was unlikely to rock the boat.

“Markets will be watching closely for signs of concern about the economic outlook, which could see the pound weaken further against the dollar and the euro,” said Chris Beauchamp, market analyst at online trader IG.

Capital Economics in London said possible UK measures could include increased spending on roads, increases in research and development and broadband, as well as an accelerated construction scheme.

“While the near-term outlook won’t be anywhere near as bad as HM Treasury suggested prior to the referendum, the longer-term outlook for growth is likely to be far from rosy,” said the London economists.