ISEQ reaches new high as markets surge

The ISEQ is hitting new highs this morning at 4,498, up 13 points having broken through the 4500 earlier as World markets continue the current Bull run.

Davy Stockbrokers looks at the stats for Irish property prices:

Stock markets closed up on Wednesday. The Euro Stoxx 50 rose 0.65pc and the S&P 500 0.25pc. The news that a new German coalition government had been formed and positive corporate earnings helped sentiment. Trading today will be relatively quiet with US markets closed for the Thanksgiving holiday.

The key macroeconomic data release today is the EU Commission’s economic confidence indicator, which is expected to rise to its highest level since mid-2011 in November. This follows the rise in the German GfK consumer confidence survey yesterday to 7.4, the highest level since 2007. Although confidence in the euro-area recovery has faltered recently, following the weak 0.1pc euro-area GDP growth recorded in Q3, survey indicators of economic activity have generally continued to improve in the fourth quarter. Yesterday, UK GDP growth for Q3 was left unrevised at +0.8pc.

The expansion in the UK economy was driven by a robust 0.8pc rise in consumer spending. Business investment also rose by 1.4pc and a robust contribution from housebuilding. Exports fell 2.4pc on the quarter. But with trade surveys still remaining positive, and the euro-area emerging from recession, export prospects for the UK look set to improve. We still expect UK GDP growth of 1.5pc in 2013, accelerating to 2.7pc in 2014.

Irish residential property price inflation was 6.1pc in October, with prices up 15pc in Dublin. In addition, mortgage approvals rose to E335m in October, the strongest level since the series began in 2011. That said, we know that actual mortgage lending, at just E1.6bn in the first three quarters of the year, is unlikely to match the E2.6bn recorded in the 2012 when the final end-year figures become available.

A lack of supply in the Dublin housing market is not only putting upward pressure on prices, but holding back first-time buyers and mortgage lending. Transactions levels are currently close to 1pc of the housing stock, an exceptionally low level according to Davy Stockbrokers. Source: Business and Leadership.