Business Irish

Tuesday 30 May 2017

US tech stocks and European cars drag global markets lower

Photo: AP
Photo: AP

Reuters

Disappointing earnings reports from Microsoft and Google parent Alphabet Inc pushed Wall Street lower yesterday, overshadowing a surge in oil prices which lifted energy shares.

Microsoft was the biggest drag on all three major indexes.

Crude rose about 1.5pc on signs of strong US gasoline consumption, declining production around the world and oilfield outages.

In the US the S&P 500 has staged a recovery from a steep selloff earlier this year and is inching toward its all-time high, helped also by a cautious Federal Reserve and companies beating tempered estimates. The index is up half a percent for the week.

Five of the 10 major S&P sectors were lower. The technology sector was down 2.47pc while energy was up 1pc.

Alphabet and Microsoft were down 6pc and 7pc, respectively, after both missed profit and revenue estimates.

General Electric was off 1.8pc at $30.43 after it reported lower organic revenue. Starbucks slipped 5.7pc after missing sales expectations.

In Europe shares fell on Friday following some disappointing company news, with automaker Daimler sliding after its results and a planned probe into its emissions certification process, while poor sales also hit luxury group Kering.

The Iseq index closed down 0.44pc at 6,123.32. Oil and gas explorer were among the few gainers, including Aminex, up almost 16pc to €0.02 each, and Petroneft, up 11.11pc to €0.03 a share.

Elsewhere, European car makers fell 2.4pc, the top sectoral decliner, dragged down by Daimler after its first-quarter operating profit fell 9pc.

Volkswagon shares fell 1.26pc to €125.45 after it doubled its estimate for the ultimate cost of the German car giant's 2015 emissions scandal.

Irish Independent

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