Sunday 11 December 2016

European shares end the week down following US jobs data

Reuters and Colm Kelpie

Published 05/09/2015 | 02:30

The main plant of timber mill Smurfit Kappa group at the Facture site in Biganos, southwestern France - the company dropped 2.6pc.
The main plant of timber mill Smurfit Kappa group at the Facture site in Biganos, southwestern France - the company dropped 2.6pc.

European shares ended the week lower after jobs data from the United States triggered selling pressure as investors try to gauge the timing of the next US rate hike.

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While there was an initially positive market reaction to the data, which showed the US economy had created fewer jobs than expected last month, a fall in the unemployment rate to a seven-and-a-half year low meant the release did not decisively quash expectations of an interest rate hike as early as this month.

By the close in Dublin, the ISEQ Overall Index fell 1.16pc, or 74.35 points, to end the trading week at 6314.57.

The leaders on the Dublin market included speciality baker Aryzta, which rose 0.2pc to €46.75, while Hibernia REIT increased 1.4pc to €1.33

On the other side of the board, Green REIT, which has results next week, dropped 4.4pc to €1.47, while packaging giant Smurfit Kappa dropped 2.6pc to €25.76.

The pan-European FTSEurofirst 300 index closed down 2.5pc at 1,392.63 points by mid afternoon, after rising 2.4pc the previous day when the European Central Bank delivered a dovish message from its first meeting after weeks of market turmoil.

"Sentiment is quite nervous...I think more and more investors blame central banks for not acting in the current environment to bring stabilisation," said Ingo Speich, portfolio manager at Union Investment in Frankfurt.

"Currently there is no positive bottom-up or fundamental signal that is strong enough to keep markets up."

Energy and mining shares were among the worst performing sectors, falling 4pc and 5pc respectively. Germany's benchmark DAX share index fell 2.7pc after data showed industrial orders had fallen more than expected in July on lower foreign demand.

Irish Independent

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