Business Irish

Sunday 22 January 2017

Stocks suffer worst monthly fall in years

Bloomberg and Colm Kelpie

Published 01/09/2015 | 02:30

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

US stocks were poised for their worst monthly drop in more than three years on worries about the health of China's economy and the timing of a US interest rate hike, while European stocks posted their worst month in four years.

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The Stoxx Europe 600 Index slid 0.1pc to 362.79 at the close of trading, extending its monthly drop to 8.5pc.

The equity gauge earlier pared losses of as much as 0.7pc after data showed the Eurozone's inflation rate rose faster in August than estimated.

The volume of shares changing hands was 56pc lower than the 30-day average as the UK market was closed for a holiday.

"There's still no clear message from Jackson Hole and that's the message the entire market is waiting for," said Guillermo Hernandez Sampere, who helps manage about €150m as head of trading at in Eppstein, Germany.

"Any panic created out of this high volatility keeps investors out of the market. The fact that our English colleagues are not in the office affects activity as well."

By the close in Dublin, the ISEQ Overall Index was up 1.5pc or 96.79 points to end the trading day at 6,405.97.

The leaders on the Dublin market included insurance group FBD, which closed up 3pc to €6.02, while speciality baker Aryzta finished up 2.4pc to €46.18.

On the other side of the board, the laggards included shipping and transport group Irish Continental, which dropped 0.1pc to €4.48.

Worldwide shares plummeted by more than $5 trillion last month as concern that China's economy may be weaker than previously thought exacerbated investor worry about whether global growth can withstand higher US interest rates. Shares in the Asian nation capped their biggest two-month tumble since 2008 amid growing concern that government intervention to support the market will fail.

Irish Independent

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