Markets - Stocks off on Argentina, Russia fears
Published 01/08/2014 | 02:30
Global stocks suffered the biggest falls in almost five months amid disappointing earnings and concern credit markets will deteriorate after Argentina defaulted and a Portuguese bank was ordered to raise capital.
Oil slid while traditional safe haven the dollar strengthened.
In Ireland, the ISEQ index closed down almost 70 points at 4647.79. Globally the MSCI All-Country World Index slid 1.2pc, for the worst intraday decline since March 3.
The Standard & Poor's 500 Index lost 1.4pc, its biggest drop since April 10. Argentina's dollar bonds declined, while Portugal's bonds slid astroubled lender Banco Espirito Santo was told to raise capital.
The dollar rose versus 15 of its 16 major counterparts. West Texas Intermediate oil sank 1.8pc.
In Ireland decliners outnumber gainers on the stock market. Of those names that did gain Province Resources led the way, with its shares up almost 3pc to €1.44 each.
Paddy Power also closed up, at €52.76, despite revealing a major historic data breach yesterday.
AIB led the declines, its shares closed just over 4pc lower at 9.3 cents each. Fyffes shares were down 3.64pc at €1.06 each while CRH stock was off 3.43 pc at €17.48 a share.
In Europe companies including Adidas and Lufthansa cited unrest between Russia and Ukraine as dimming prospects for growth.
S&P said Argentina was in default as the nation missed an interest payment on $13bn of debt after negotiations with bondholders failed.
"Selling breeds selling," said Timothy Ghriskey, chief investment officer for Solaris Asset Management LLC.