Thursday 8 December 2016

European stock rebound stalls

Published 26/07/2016 | 02:30

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

After starting the day with a strong rally, European equities pared most of their gains, with a decline in oil weighing on energy producers.

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By the close in Dublin, the ISEQ Overall Index increased 0.54pc, or 31.36 points, to end the trading session at 5,839.38.

The leaders on the Dublin index included insurance group FBD, which increased 1.5pc to €5.54, while drinks group C&C rose 0.9pc to €3.67.

On the other side of the board, the laggards included speciality baker Aryzta, which fell 0.3pc to €33.91, while insulation group Kingspan slipped 0.7pc to €21.33.

Elsewhere, the Stoxx Europe 600 Index rose 0.2pc at the close of trading in London, trimming a gain of as much as 0.8pc following confidence data that showed companies may have withstood the initial shock of the UK vote to leave the European Union. Oil firms sank the most since July 6, dragging the benchmark gauge down as much as 0.2pc before it recovered. The Stoxx 600 came within 1pc of erasing its Brexit losses earlier, after figures showed the Ifo institute's index of German business sentiment fell less than expected in July.

But its gain was short-lived: the rebound stalled for a third day after the equity gauge hit a one-month high last week, with lenders' stress-test results looming.

"I was a little bit surprised to see the market go up the way it did this morning," said Pierre Mouton, a fund manager at Notz, Stucki & Cie in Geneva.

"We have the stress-test results for European banks, which might add to some worries about the financial health of the banking system."

The Stoxx 600 has regained almost all of its Brexit losses, posting its first back-to-back weekly gains since March.

Additional reporting by Bloomberg

Irish Independent

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