Friday 18 August 2017

European shares fall on Trump speech

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Reuters

European shares fell yesterday, weighed down by banks, oil stocks and a fall in Fingerprint Cards after the firm's former chief executive and a board member were arrested.

The pan-European STOXX 600 index fell 0.4pc, extending last week's drop to its lowest close since December 29 as equity markets reacted to Friday's inauguration speech by US President Donald Trump, which struck a protectionist tone.

The UK's blue-chip FTSE-100 index fell 0.6pc, down after the pound rose to a one-month high against the dollar.

Mr Trump's speech punctured optimism over the US economy spurred by his earlier promises of tax cuts and other stimulus.

Hopes of fiscal stimulus in the US lifted the STOXX to 12-month highs at the start of January but growing worries over whether Mr Trump will deliver on that policy have caused the index to fall back.

In Ireland, the ISEQ Overall Index was 0.4pc lower at 6,596.42.

Movers included Bank of Ireland, which fell 2pc to 24 cent.

Shares in Paddy Power Betfair tumbled 3.1pc in Dublin to €96.80. The gambling firm said that Donald Trump's win in the US presidency race had cost it almost £5m.

The UK's FTSE-100 ended the session declined 0.6pc. Germany's DAX was down 0.7pc and France's CAC-40 was 0.6pc lower.

Swedish biometric technology firm Fingerprint Cards was the biggest faller on the STOXX 600 index, dropping 7.5pc after the Swedish Economic Crime Authority took board member Lars Soderfjell and former ceo Johan Carlstrom into custody for alleged market abuse.

Insurer Generali rose 3.9pc following a report about bank Intesa Sanpaolo and Germany's Allianz being interested in Italy's biggest insurer.

Irish Independent

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