Business Irish

Sunday 4 December 2016

ISEQ falls amid little change across the European markets

Bloomberg/Colm Kelpie

Published 23/07/2016 | 02:30

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt

European equities closed little changed, paring a second weekly advance, amid mixed data on the services and manufacturing industries.

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By the close in Dublin, the ISEQ Overall Index was down 0.11pc, or 6.63 points, to end the trading week at 5,808.02.

The leaders on the Dublin market included packaging giant Smurfit Kappa, which increased 0.2pc to €21.70, while drinks group C&C rose 0.4pc to €3.64.

On the other side of the board, banana company Fyffes slipped 1.7pc to €1.49, while insulation group Kingspan fell 1.1pc to €21.48.

Elsewhere, the Stoxx Europe 600 Index dropped 0.1pc, trimming a loss of as much as 0.7pc. Germany's manufacturing output reached the highest level since early 2014 and a composite Purchasing Managers' Index for France stood at 50, the threshold that divides expansion from contraction, according to Markit Economics.

For the UK, the composite data slumped to its lowest since April 2009 in the wake of the referendum to leave the European Union. "Investors remain concerned on the prospects for economic growth in the euro zone after Brexit," said Arno Endres, head analyst at Luzerner Kantonalbank in Switzerland.

"The confidence level will be a problem longer term because overall central banks are running out of ammunition, and I'm not so confident helicopter money will have the desired effect. Earnings are contributing to the negativity as it's been a mixed picture."

While the Stoxx 600 closed at a four-week high on Wednesday, it has alternated between daily gains and losses for most of the last week amid corporate earnings and speculation about central-bank stimulus.

President Mario Draghi said the European Central Bank will consider increasing stimulus when it has a cleared picture of the impact of the Brexit vote.

Irish Independent

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