Friday 30 September 2016

ISEQ Index bucks European trend

Published 21/10/2015 | 02:30

Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt. Photo: Reuters
Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt. Photo: Reuters

European stocks declined after a report showing an improvement in the region's lending conditions lowered the prospects for additional monetary stimulus.

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After hovering near a two-month high in the first hour of trading, equities slid as a European Central Bank survey showed credit standards on loans to companies eased for the sixth straight quarter.

Banks fell after the ECB said its quantitative-easing programme will drag on profitability at those companies in the next six months.

By the close in Dublin, however, the ISEQ Overall Index had bucked the trend, rising by 0.18pc, or 11.62 points, to end the trading session at 6,298.77.

The leaders on the Dublin market included food ingredients company Kerry Group, which rose 0.8pc to €69.32, while bookmakers Paddy Power rose 1.3pc to €100.85.

On the other side of the board, the laggards included insurance group FBD, which slipped 1.4pc to €6.80, while Kingspan dropped 1.2pc to €21.35. "The market is disappointed because if there is any improvement there, then for sure there's no expansion of the purchases," said Plassard, a senior equity-sales trader at Mirabaud in Geneva.

"Good news is bad news. [Mario] Draghi will probably continue saying ECB will use all its tools and they will repeat what is in the bank lending report."

The Stoxx Europe 600 Index dropped 0.4pc to 362.67 at the close of trading. Spain's Banco Popular Espanol and Banco de Sabadell led a drop among lenders, slipping 3.3pc or more.

Europe's equity benchmark pared a decline of as much as 0.9pc after commodity producers trimmed losses, tracking gains in their US counterparts.

Swatch Group and Cie. Financiere Richemont fell at least 1.1pc after a report showed Swiss watch exports had their biggest quarterly decline since 2009.

(Additional reporting by Bloomberg)

Irish Independent

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