Europe stocks fall on investor worries
Published 19/02/2016 | 02:30
European stocks gave up almost all the gains they had held on to for the better part of the day, as investors sold shares most closely linked with economic growth.
Banks, miners and energy shares slid, with the Stoxx Europe 600 Index following oil lower after a report showing US crude inventories advanced to an 86-year high.
The regional benchmark added less than 0.1pc at the close of trading, paring an advance of much as 1pc. It fell as much as 0.6pc earlier. A gauge of Eurozone stock volatility reversed losses to snap a four-day declining streak.
Irish shares bucked the trend, however.
By the close in Dublin, the ISEQ Overall Index was up 0.3pc, or 18.54 points, to end the trading session at 6,130.04.
The leaders on the Dublin market included Ryanair, which increased 3.2pc to €14.30, while Dalata Hotel Group rose 1.1pc to €4.50.
On the other side of the board, the laggards included speciality baker Aryzta, which fell 1.7pc to €41.17, while drinks group C&C slipped 0.3pc to €3.49. "We look for some recovery for the next few weeks but the jury is still out," said Christian Gattiker, head of research at Julius Baer Group in Zurich.
"We don't buy the junk and what's been bashed most. It's premature to buy back into bank stocks."
Lenders, the most battered among European peers this year, led losses.
The group slumped to a three-year low last week amid worries over bad loans at Italian banks, the impact of a low- rate environment on profits and Deutsche Bank's creditworthiness.
Banca Monte dei Paschi di Siena, UniCredit and CaixaBank slipped at least 5.6pc yesterday.
Anglo American and Rio Tinto led miners lower, after Wednesday's 8.1pc rally pushed commodity producers into a bull market and erased their losses for the year.
Additional reporting by Bloomberg