Energy shares drag down markets
Published 24/07/2015 | 02:30
European stocks fell for a third day yesterday as a decline in energy shares outweighed better-than-expected results from Credit Suisse and Unilever.
BY the close in Dublin, the ISEQ Overall Index was down just fractionally, by 0.1pc or 6.42 points, to end the trading session at 6,511.65.
The leaders on the Dublin market included drinks group C&C, which increased 1.6pc to €3.65, while packaging giant Smurfit Kappa rose 1.4pc to €28.18.
On the other side of the board, the laggards included speciality baker Aryzta, which slipped 0.9pc to €45.40, while Dalata Hotel group lost 2pc to €4.
Elsewhere, oil-and-gas stocks contributed the most to the Stoxx Europe 600 Index's drop, with BP retreating 1.4pc.
Credit Suisse rose 6.2pc after quarterly profit beat estimates.
Unilever climbed 1.6pc after the maker of Magnum ice cream reported higher-than-forecast sales growth. The Stoxx 600 slid 0.5pc to 398.1 at the close of trading, after earlier rising as much as 0.6pc.
The volume of shares changing hands was 18pc lower than the 30-day average. Shares had advanced to within 2pc of their record in a nine-day rally through Monday.
"We expect good profit growth in Europe, so there shouldn't really be a massive rally on the back of a strong earnings season," said Ben Kumar, who helps oversee about $14bn at Seven Investment Management in London.
"This earnings season is confirming people's positive outlook on Europe and showing that the markets were right to look through Greece to the underlying fundamentals.
"It's nothing more than that so far."
The earnings season is picking up pace in Europe, with more than 200 Stoxx 600 companies scheduled to report through the rest of the month.