Tuesday 21 October 2014

Three-month low for Dublin shares and European stocks

Sarah Stack

Published 02/08/2014 | 02:30

The Irish Stock Exchange on Anglesea Street, in Dublin
The Irish Stock Exchange on Anglesea Street, in Dublin

IRISH shares fell the most in 11 weeks as transport firm Irish Continental dropped 4.5pc.

In Dublin, the Irish Stock Exchange closed at 4614.85, down 32.94 points or 0.7pc, in line with stocks worldwide.

European stocks also dropped to the lowest level in more than three months as companies including ArcelorMittal and Vinci posted worse-than-expected earnings.

The Stoxx Europe 600 Index fell 1.2pc to 331.91 at the close of trading.

"In Europe, we're seeing a weak economy with very bad currency effects on companies and unattractive valuations," said Jacques Porta, of Ofi Gestion Privee in Paris. "That doesn't give investors a good feeling about buying the market. We've seen weak results in Europe, so sentiment is turning bearish."

Manufacturing firm ArcelorMittal dropped 6.1pc to €10.68, the most since October 2012, after also lowering its full-year profit forecast.

French construction company Vinci also slipped the most in almost three years, while telecoms giant Iliad retreated 7pc after offering $15bn for a controlling stake in T-Mobile US.

In London, stocks slid the most in more than three weeks with the FTSE 100 Index down 50.93 points, or 0.8pc, to close 6,679.18.

US stocks fell, extending Thursday's 2pc decline in the Standard & Poor's 500 Index, as concerns over Argentina's default and Portugal's Banco Espirito Santo overshadowed monthly jobs data.

The S&P's 500 Index fell 0.7pc to 1,917.86 in New York, as the Dow Jones Industrial Average declined 106.76 points, or 0.6pc, to 16,456.54.

"You never want to see a flat opening after a day like Thursday where we saw broad-based sell-off," Rick Fier, of Conifer Securities, said.

"The only thing a flat opening gets you is more sellers."

(Bloomberg)

Irish Independent

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