Eleven-day share slide is Europe's longest losing streak since 1994
Published 05/11/2016 | 02:30
European stocks fell for an 11th consecutive day yesterday, the longest period without gains since 1994. Markets suffered the latest bruising week on gathering fears the US election could see Donald Trump emerge as president - and the dawning of an era of policy instability and unpredictability.
But the losses might just have gone too far: the Stoxx 600's relative strength index hit a level that analysts call oversold, indicating potential for a rapid bounceback.
"The fact that we've broken into oversold territory shows that. Investors in Europe are expecting a bit more clarity, a bit more confidence from the US. In the short term, a Clinton win may bring some relief," said Pierre Martin, a trader at Saxo Bank.
In Dublin the Iseq index closed down marginally yesterday, at 5919.05, and has held up better than many markets over the week.
Sentiment generally though is dominated by US politics.
"The economic data and the earnings season have been reasonable, but there are a lot of political crosswinds dampening sentiment," said Daniel Murray of EFG Asset Management.
"Clinton may not be universally liked, but she does at least have senior administration experience and would be viewed as a safer and more predictable helmsman."
In Dublin shares in Providence Resources led the gainers on Friday, up 9pc to 12 cents each. Ptsb was up 4.87pc at €2.54 a share, and Paddy Power rose 4.46pc to €100.50 a share after well received results.
On the other side of the board, Smurfit Kappa was among the steepest decliners, with shares down 2.89pc to €20.315 each, while AIB fell 2.80pc to €5.20 a share.
Banks across Europe tended to be weaker, Erste Bank plunged 7pc after Austria's biggest bank forecast lower profitability next year. (Additional reporting Bloomberg)