European shares start September down
Published 02/09/2015 | 02:30
The plunge that led Europe's equities to their biggest monthly losses since 2011 is showing no signs of easing.
The Stoxx Europe 600 Index sank 2.7pc yesterday, and dropped as much as 3.3pc. The measure followed Asian stocks lower after a report showed China's official factory gauge dropped to a three-year low, while separate data signalled manufacturing in the Eurozone shrank more than initially forecast and output in the US expanded at the slowest pace since 2013.
Miners again were the most hurt among European industry groups, sliding 5.6pc as commodities resumed their declines.
By the close in Dublin, the ISEQ Overall Index was down 2.27pc, or 145.62 points, to end the trading session at 6,260.35.
The leaders on the Dublin market included banana group Fyffes, which closed up 3.1pc to €1.44, while insurance group FBD rose 3.1pc to €6.20.
On the other side of the board, the laggards included Kerry Group, down 2.9pc to €64.45 and Dalata Hotel Group, which dropped 3.6pc to €4.
"There seems to be a bit of an industrial downturn going on in Asia," said Dirk Thiels, head of investment management at KBC Asset Management.
"People are still trying to assess what the impact of that will be on the rest of the world and it's not an easy one. You can't really call the bottom of the market at the moment. We are a bit worried."
The slide in commodity prices and rebound in the euro prompted Morgan Stanley to cut its forecasts for profit growth at European companies. The bank now projects earnings will be flat this year before rising 7pc next and 10pc in 2017. Benchmark measures for UK, Spanish and Dutch equities were among those that fell the most in western Europe yesterday, sliding more than 2.5pc.