Business

Friday 30 September 2016

Global stocks touch two-year low

Donal O'Donovan / Reuters

Published 30/09/2015 | 02:30

Glencore recovered slightly. Photo: Getty Images
Glencore recovered slightly. Photo: Getty Images

Global stocks touched a two-year low yesterday and European shares fell for the second day in a row as weakness in the commodities sector hit markets, though battered miner Glencore halted its slide after a bruising sell-off on Monday.

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In Dublin, the ISEQ index of Irish shares was down a hefty 2.68pc to 6055.96. That rout meant only a hand full of names escaped the general slide lower - among them Aminex. Datalex and Malin Corp.

But for most names in Ireland and across Europe the day was market by declines.

The pan-European FTSEurofirst 300 index and the Eurozone's blue-chip Euro STOXX 50 index both fell 1.6pc, following on from losses of more than 2pc on both indexes on Monday.

Miner and commodity trader Glencore recovered slightly yesterday to rise 5.2pc after a plunge on Monday. Analysts at Citigroup and Bernstein said the sell-off in Glencore had been overdone and that there was value in the business. But concerns over a slowdown in China have hit commodity prices and mining stocks.

Carmaker Volkswagen weakened by 4.2pc, with Hungary's Economy Minister Mihaly Varga saying yesterday that about two million of the 11 million diesel engines involved in the Volkswagen emissions scandal were manufactured at an Audi plant in western Hungary.

In the US stocks gave up some of their early gains in afternoon trading yesterday as investors remained cautious amid lingering concerns about the health of the global economy.

A rebound in US healthcare stocks, which looked set to snap a seven-day losing streak, provided some succour to investors worried about a China-led global slowdown.

Irish Independent

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