Business Irish

Saturday 3 December 2016

Disappointing results lead to slide in indexes

Published 27/10/2016 | 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)

Markets across Europe were down yesterday as a barrage of disappointing results at bellwether firms from Apple to Lloyds Banking Group and a slide in oil spurred a slump in global equities. Bonds also fell. London's FTSE 100 index was down 0.8pc in mid afternoon, while German and French indexes were down by 0.77pc and 0.7pc, respectively.

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Crude fell to a three-week low as industry data showed US crude stockpiles rose while doubts grew about Russian willingness to cooperate with Opec in curbing supply.

"The mood is really negative," said Phil Flynn, senior market analyst at Price Futures Group in Chicago.

"The API report showed a larger-than-anticipated build in crude supplies and there are lingering doubts aboutOpec.

"The market will remain sensitive to headlines until the Opec meeting next month."

Meanwhile, London's financial district has called for a UK regulatory regime that does not harm competitiveness, responding to bankers' fears that being outside the European Union will reduce the capital's clout in global markets.

The City of London's Lord Mayor, Jeffrey Mountevans, said that after Britain's vote to leave, "realistic, collaborative" regulation was needed.

London property prices are set to fall next year as uncertainty about Britain's exit from the European Union damps the UK housing market, according to the Centre for Economics and Business Research.

Elsewhere, GlaxoSmith-Kline beat quarterly sales and profit expectations and said it expected even bigger gains in 2016 thanks to a weak pound, which has continued to fall after Britain's vote in June.

The group generates more than 95pc of its sales outside Britain, while many of its costs are in pounds, making it a big winner from sterling's tumble.

Airbus Group has voiced frustration at a continued ban on Super Puma oil industry flights in Britain, weeks after European safety regulators cleared the helicopter to fly again.

In Ireland, the ISEQ overall index of Irish shares was down by 0.58pc in mid-afternoon trading at 5,935.48 - a loss of 34.37 points.

Building materials firm Kingspan lost 2.1pc, while insurance group FBD was down by 2pc after the company announced it was to invest in a €55m property venture in Spain.

Financial group IFG clawed back losses from earlier in the week with gains of 2.4pc. Likewise, drinks firm C&C gained 1.3pc having also lost ground in Tuesday's trading.

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