Business Irish

Friday 30 September 2016

Brexit and Fed weigh on markets again

Published 14/06/2016 | 02:30

Traders gather for the opening of LinkedIn Corp at the post where it is traded on the floor of the New York Stock Exchange
Traders gather for the opening of LinkedIn Corp at the post where it is traded on the floor of the New York Stock Exchange

IRISH shares tumbled once again yesterday, as traders continued to shun markets ahead of the UK vote on whether to leave the European Union in two weeks' time, and Janet Yellen's US Federal Reserve deciding whether to increases interest rates later this month.

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By the time stumps were drawn in Dublin, the ISEQ Overall Index had fallen 2.29pc, or 142.82 points, to close at 6,085.42.

The index struggled from the opening and continued to slide throughout the session. Hostelworld struggled desperately once more, albeit on light volume. The hospitality firm dropped 13.07pc to close at €1.87 - a new all-time low.

Permanent Tsb slid 6.64pc to hit €2.04. The bank has taken a slew of negative analyst reports in recent days.

There was little in the way of positive sentiment, with only one stock rising compared to 30 which fell.

That one winner was Applegreen, which gained 0.7pc top reach €4.30.

It was a sea of red ink across Europe yesterday. The Stoxx Europe 600 Index dropped 1.84pc after a 2.4pc fall on Friday.

In London, the FTSE 100 Index fell 1.2pc. In Paris the CAC 40 Index fell 1.9pc while Germany's DAX Index gave up 1.8pc.

"There are many uncertainties, so we could continue seeing declines and touch new lows in the days to come," said John Plassard, a senior equity-sales trader at Mirabaud Securities in Geneva. "Even though nobody is expecting a rate hike, everyone will look at what Yellen will say at the press conference. We are 10 days from the Brexit vote, while oil is lower and volatility is the highest in months."

In New York, Blackstone fell 0.2pc after it raised $5.5bn (€4.8bn) to buy European property.

Irish Independent

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