Tuesday 25 October 2016

European shares edge back from their seven-week high


Published 13/08/2016 | 02:30

Shares in Maersk were up 3.1pc
Shares in Maersk were up 3.1pc

European shares edged back after setting a fresh seven-week high yesterday, with weaker miners offsetting gains in companies such as shipping firm Maersk, which rose sharply following its earnings update.

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Shares in Maersk ended up 3.1pc, having risen as much as 6.9pc earlier, after the Danish shipping and oil giant stuck to its 2016 forecast despite a sharp fall in quarterly net profit.

The second-quarter reporting season is entering into its final stages.

So far, 88pc of companies in the Stoxx 600 index have reported results, of which 61pc have met or beaten earnings per share forecasts. However, the second-quarter earnings are set to fall about 8pc from last year.

The Stoxx Europe 600 index was down 0.2pc after hitting a seven-week high earlier in the session, recouping all of its post-Brexit losses.

In Ireland, the ISEQ Overall Index ended the session 1pc, or 59.43 points higher, at 6,049.18.

It has risen nearly 800 points since its collapse following the Brexit vote. FBD was the standout performer during the day.

It closed over 11pc higher at €6.85 after posting a much smaller than expected first-half loss, and saying that it will return to profitability next year.

CRH also made solid gains, rising 1.4pc to €28.40.

Davy Stockbrokers issued an upbeat assessment of the company this week.

Ferry group Irish Continental added 2.2pc, while Ryanair rose 2.1pc. Bank of Ireland slipped 0.5pc. The UK's FTSE-100 was flat, while Germany's DAX edged almost 0.3pc lower. France's CAC-40 was also flat.

Miners came under pressure as metals prices fell after data showing China's fixed-asset investment growth eased to 8.1pc year-on-year in the January-July period, missing market expectations. Industrial output growth rose 6pc.

Irish Independent

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