Saturday 1 October 2016

European indices hold ground despite China stockmarket slump

Reuters

Published 28/11/2015 | 02:30

Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters
Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters

Markets shuddered yesterday after another fall in Chinese stocks jangled investors' nerves.

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But expectations that the European Central Bank will next week add further financial stimulus to the Eurozone helped to ease the impact on indices on this side of the world. Mining companies were among the fallers, however.

"Miners are suffering from China and a stronger US dollar outlook," said Ankit Gheedia, an equity and derivatives strategist at BNP Paribas.

"There is clearly a risk that China will try to devalue the currency further, but there is less of a risk of that compared to earlier in the year."

Bets that the ECB will extend or increase its quantitative easing programme next week helped to spur the FTSEurofirst 300 to a three-month high on Thursday.

Yesterday, Ireland's Overall ISEQ Index was virtually unchanged, shedding just 0.19pc, or 13.13 points, to close the session at 6,798.58.

Stocks on the move included agri group Origin Enterprises. It said that a slowdown in activity in the first quarter was due to a weather-delayed harvest that also caused winter crop planting to slip behind schedule.

Its revenue fell 5.5pc to €300.4m, and excluding currency movements was down 9pc. Its shares largely shrugged of the news, dipping less than 1pc to €7.32.

Shares in Bank of Ireland declined 1.4pc to 35 cent, while insurer FBD rose 1.4pc to €6.95.

The UK's FTSE100 closed 0.3pc lower at 6,375.15 points, but was up 0.6pc in the week. France's CAC-40 was 0.32pc down and Germany's DAX was 0.24pc lower.

Shares in mining firm Anglo American slumped 8.2pc and those in Rio Tinto tumbled 3,2pc.

Shares in gambling group Betfair, which is merging with Paddy Power, rose 1.5pc after Deutsche upgraded it to buy from neutral.

Irish Independent

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