Monday 24 October 2016

Brexit and Fed worries push market to worst day since February

Published 11/06/2016 | 02:30

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

IRISH shares slumped yesterday, as the Dublin market recorded its worst one-day fall since February.

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By the close in Dublin the ISEQ Overall Index had fallen 2.01pc, 127.81 points, to close at 6,230.33.

The slump comes ahead of British voters deciding whether the country should stay in the European Union later this month.

Traders are also worried about the state of the US economy after a jobs report last week that missed market expectations by a wide margin. US Federal Reserve chair Janet Yellen had been poised to increase interest rates this month.

However, the unexpectedly weak economic figures from the US has created uncertainty in the market.

Ms Yellen had long indicated that the next increase would come this month.

In Dublin, Independent News & Media (INM) issued a notice stating that its chief executive, Robert Pitt, bought 135,952 shares in the company yesterday at 15 cent each, a total spend of just over €20,000. Elsewhere, Permanent TSB slumped 3.74pc to 2.19.

Analysts at UK firm Keefe, Bruyette & Woods, which helped run the IPO of Permanent TSB last year, downgraded their rating on the stock.

Ryanair fell 2.65pc. The airline said it would look at renting out accommodation in a manner similar to Airbnb.

Fruit and vegetable firm Total Produce fell 4.76pc to 1.58, albeit on relatively light volume.

That sell-off continued through most of Europe.

The composite Stoxx 600 Index fell 2.4pc, while in London the FTSE 100 lost 1.86pc. The Cac40 in Paris slid 2.2pc, while the Dax Index in Frankfurt fell 2.5pc.

"Everybody seems angry about this market," said Benno Galliker, a trader at Luzerner Kantonalbank in Lucerne, Switzerland.

Irish Independent

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