Thursday 27 July 2017

Stocks fall amid global growth worries

Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters
Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters

Bloomberg and Colm Kelpie

European stocks fell, after rising four times in the past five days, as investors weighed the outlook for global economic growth and stimulus.

By the close in Dublin, the ISEQ Overall Index fell 1.09pc or 71.96 points to end the trading session at 6,528.33.

The leaders on the Dublin index included insulation group Kingspan, which rose 4.7pc to €23.35 after it announced that sales hit €2bn in the nine-month period to the end of September - up 44pc on the same period last year.

Drinks group C&C rose 0.3pc to €3.67.

On the other side of the board, the laggards included building materials group CRH, which fell 2.4pc to €25.53, while Ryanair dropped 1.9pc to €14.50.

Elsewhere, shares of exporters fell after worse-than-forecast Chinese trade data. Continental led a drop in carmakers, losing 5.3pc after its sales missed analysts' projections. Renault slid 3.5pc after France, the company's biggest shareholder, said it would oppose a merger with Japanese partner Nissan.

Personal and household-goods shares slid, with Hermes International and Christian Dior down at least 2.1pc.

"There is some caution on the consumer side and export-led sectors that comes from questions about the Chinese economy and emerging markets as a whole," said Pierre Mouton, a fund manager at Notz, Stucki & Cie in Geneva.

"The economic numbers from China are not very good for the time being."

The Stoxx Europe 600 Index lost 1.1pc at the close of trading. Portugal's PSI 20 Index slid 4.1pc, the most among western-European markets.

The nation's opposition parties agreed to join forces to oust the current administration, boosting prospects of a new government that's against spending cuts linked to an international bailout.

Irish Independent

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