Wednesday 28 September 2016

European bourses start week in the red

Reuters

Published 30/08/2016 | 02:30

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt

Most European stock markets ended yesterday's session marginally lower, with mixed data and prospects from both sides of the Atlantic. UK markets were also closed for a holiday.

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US figures showed that consumer spending rose for the fourth month in a row during July, bolstered by demand for new cars.

In Germany, the country's BGA trade association slashed 2016 export forecasts on the back of the UK's decision to leave the European Union.

The association said that exports from Germany next year are likely to stagnate.

The prospect of a US rate rise also dented European bourses.

In Ireland, car sales also helped to boost overall consumer spending figures.

But the underlying picture was weaker. The volume of retail sales was 12.6pc higher in July versus June on strong car sales. But excluding those sales, the figure was 0.5pc lower. Ireland's Overall ISEQ Index closed the day 0.7pc higher at 6,214.36. Shares on the move included Bank of Ireland.

It fell 1pc after it intensified efforts to secure new mortgage lending business by boosting the amount of cash it will return to customers who take out home loans with the bank.

Shares in recruitment firm CPL Resources were 2.7pc higher at €5.33.

It releases full-year results this week, with Davy Stockbrokers expecting a strong underlying performance by the company.

CRH added 1.2pc to close at €30.21, still benefiting from its strong interim results last week and the improving US economy.

Ryanair closed nearly 1pc higher, at €12.11.

Germany's DAX edged 0.4pc lower, while France's CAC-40 was down 0.4pc.

Irish Independent

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