Business Irish

Thursday 28 August 2014

Markets - Global stocks decline as ISEQ rises

Published 16/07/2014 | 00:00

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Portuguese bank Banco Espirito Santo tumbled a seventh day as a group company faces a debt payment
Portuguese bank Banco Espirito Santo tumbled a seventh day as a group company faces a debt payment

European stocks declined after the biggest rally in more than a week was dragged lower by technology companies.

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German owned Software AG lost 19pc as its earnings fell and Imperial Tobacco dropped 3.5pc after saying it will acquire rival 
Lorillard.

Private Portuguese bank Banco Espirito Santo tumbled a seventh day as a group company faces a debt payment.

The Stoxx Europe 600 Index fell 0.3pc to 338.82 in London and the Standard & Poor's 500 Index fell 0.5pc to 1,967.85 in New York where investors considered comments from Federal Reserve Chair Janet Yellen.

"It looks like Yellen has spooked the markets," said Ion-Marc Valahu, of Clairinvest. "Given the strong Empire manufacturing release it seems Yellen's testimony is too dovish and that the Fed might be behind the ball."

Yellen told US lawmakers the Fed must press on with monetary stimulus as "significant slack" remains in labour markets and inflation is still below the central bank's goal.

The Federal Reserve said valuations for smaller companies in social-media and biotech industries appear "substantially stretched."

In Dublin, the ISEQ closed at 4711.02, up 9.76 points or 0.21pc.

Investment group TVC Holdings, which is due to cancel its listing on the Irish Stock Exchange, rose by 18pc to .059 cents making it the main leader on the day. It was followed by exploration firm Kenmare Resources, up 6.15pc, and Donegal Investment, up 3.16pc.

The laggers included exploration firms Aminex, down 15pc, Ovoca Gold, which slid 13.6pc and Petroneft, down 6.87pc. Building materials company CRH fell 5.7pc to €17.73.

Elsewhere UK stocks fell as inflation data in Britain fuelled speculation the Bank of England may raise interest rates within months.

The FTSE 100 Index slid 35.69 points, or 0.5 percent, to 6,710.45 at the close in London. The gauge lost 2.6 percent last week amid signs of financial stress among some Portuguese banks.

Irish Independent

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