Growth fears stem European stocks rally
Published 17/02/2016 | 02:30
A rebound for European stocks once again proved short-lived on renewed concerns about global-growth prospects, dragging banks and miners lower.
By the close in Dublin, the ISEQ Overall Index slipped 0.54pc, or 32.38 points, to end the trading day at 5,922.31.
The leaders on the Dublin market included speciality baker Aryzta, which increased 1.7pc to €41.03, while Glanbia rose 1.3pc to €16.94.
On the other side of the wall, the laggards included insurance group FBD, which closed down 1.5pc to €6.36, while insulation group Kingspan fell 1.5pc to €22.20.
Elsewhere, the Stoxx Europe 600 Index dropped 0.4pc to 320.37 at the close of trading, after rising as much as 0.8pc and falling 1pc. Volatility has been increasing in the past two months as concerns grew over the efficacy of central-bank stimulus, while economic data started missing estimates.
Germany's DAX Index and Greece's ASE Index were among the worst performers of western-European markets, falling at least 0.8pc. Lenders fell after their biggest two-day surge since 2011. Mining-related companies also halted a rally that pushed them up 11pc, with steel-pipe maker Tenaris and Norsk Hydro leading declines.
Energy stocks reversed an advance, as oil retreated after Saudi Arabia and Russia agreed to freeze output.
"We've enjoyed a tactical rebound, but most of the risk is still on the downside," said Ralf Zimmermann, a strategist at Bankhaus Lampe in Dusseldorf. "People are looking at policy makers - be they central banks or OPEC - for more reassurance because everything boils down to what will happen to global growth. Markets need more than just a freeze in oil production, they need a cut."
Shares briefly extended losses after Germany's ZEW Centre for European Economic Research said investor confidence fell to its lowest level since October 2014 in February.
Additional reporting by Bloomberg