Markets recover after WTO downgrade
European markets rebounded from early losses yesterday, as investors digested news that the World Trade Organisation (WTO) had downgraded its outlook for global growth.
The international body said global trade was at its lowest level for more than seven years, consequently revising its forecasted growth for the global economy down to 1.7pc from 2.8pc.
The WTO cited a slowdown in the Chinese economy and falling US imports as the main reasons for the revision.
And the President of the European Central Bank, Mario Draghi, said that economic imbalances within the euro area threatened to destabilise the currency union. Mr Draghi's remarks were seen as a call for Germany to boost investment, a move Berlin has so far rejected.
German's Dax closed down 1pc at 10398. The index recovered early losses brought on by concerns over the financial position of the country's largest lender, Deutsche Bank. Shares in Deutsche were down by less than 0.1pc yesterday, but the value of the stock has more than halved over the course of the year to date.
In London, the FTSE 100 rallied late on to close up 0.1pc. The French CAC also gained 0.1pc at the close.
The ISEQ overall index of Irish shares dropped to its lowest level in over a month, closing at 5990.69, losing 24.25 points, or 0.4pc.
The day's biggest loser was shipping firm Irish Continental Group, with shares in the company down 4pc. Hostelworld lost 2.8pc in value, while Smurfit Kappa shares fell by 2.1pc after an analyst briefing forecasted a decline in revenues of 3pc for 2017. Financial firm IFG had gains of 2.6pc, while mining stocks were also up at yesterday's close.