Friday 28 April 2017

Bourses drop despite sentiment boost

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

A 10-year investment-sentiment high in the Eurozone wasn't enough to propel stockmarkets into the black yesterday. And even data that showed US factory orders rose for a second month in a row didn't lift spirits in Europe.

Investor sentiment in the eurozone measured by research group Sentix improved more than expected in March, hitting its highest level in nearly a decade as concerns that global political risks could end an economic upswing dissipated.

New orders for US-made goods increased for a second straight month in January, suggesting the recovery of the manufacturing sector was gaining momentum as rising prices for commodities spur demand for machinery.

"All the expectation components for the global economic regions rose and cast the decline of last month in a new light," according to Sentix. "Therefore the potential threat of a sudden halt to the economic recovery is off the table."

In Ireland, the ISEQ Overall Index closed 0.3pc lower at 6,651.34.

Bank of Ireland fell 2.1pc to 23 cent, although ratings agency Fitch indicated it could upgrade the bank, and rival AIB, if their asset quality improves.

Shares in travel software firm Datalex were 2.49pc higher at €3.60 and embattled Swiss-Irish good group Aryzta climbed 1.7pc to €31.08.

The UK's FTSE-100 ended the session 0.3pc lower. Germany's DAX was 0.57pc down and France's CAC-40 declined 0.46pc.

Aer Lingus owner IAG confirmed that it will lease seven long range Airbus 321neos for the Irish carrier. Meanwhile, France's PSA Group - the owner of Peugeot - agreed to buy Opel from GM in a deal valuing the business at €2.2bn.

Reuters

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