Thursday 23 March 2017

Irish stocks little changed amid European fall

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

Gavin McLoughlin

the Irish index of shares was little changed yesterday, closing down 0.22pc at 5894.56.

Housebuilder Abbey was among the better performers on the day on which it published its annual report. Though the company has warned of a negative short-term impact from Brexit, it is sitting on a cash pile of almost €100m. It rose just under 2.2pc.

On the other side of the board Aminex was the worst performing stock, closing off almost 4.2pc. The oil and gas explorer is trading at 2.3c - well above the 1.5c seen six months ago but down on 3c a pop in August.

In Europe stocks fell for the fourth time in five days.

All industry groups in the Stoxx Europe 600 Index slid, pushing the benchmark gauge down 0.7pc. Bonds in Europe fell earlier, with the yield on 10-year German bonds reaching its highest since June, after data showed a pickup in euro-area inflation.

"We've got flatlining growth, commodity prices probably at their peaks for this year, and rising inflation expectations as a result of the Federal Reserve stepping back from its easy monetary policy," said Michael Hewson, an analyst at CMC Markets in London.

"Ultimately, one of the key drivers of equity markets has been that it's the only game in town with respect to yields.

"The fact that bond yields have started to rise suggests that inflation is making a comeback, and that's potentially weighing on equity markets."

Concern about whether the global recovery can withstand tightening in monetary policies has dragged the Stoxx 600 down 3.8pc from its September high. The measure has lost 1.6pc in October.

Additional reporting by Bloomberg

Irish Independent

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