Saturday 21 January 2017

European stocks fall for a sixth day

Colm Kelpie and Bloomberg

Published 10/06/2015 | 02:30

Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany. Photo: Reuters
Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany. Photo: Reuters

A slump in German equities helped send European stocks down for a sixth day.

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By the close in Dublin, the ISEQ Overall Index was down 0.39pc or 23.57 points to end the trading session at 6058.30.

The leaders on the Dublin market included speciality baker Aryzta, which rose 2.3pc to €49, while packaging giant Smurfit Kappa increased 1pc to €25.85.

Independent News & Media, the parent company of this newspaper, closed up 1pc to 19 cents.

On the other side of the board, the laggards included insurance group FBD, which fell 1.8pc to €9.11 and building materials firm CRH, which slipped 1.4pc to €24.47.

Elsewhere, the Stoxx Europe 600 Index fell 0.4pc to 383.87 at the close of trading in London, earlier losing as much as 1.4pc.

Germany's DAX Index declined 0.6pc after entering a correction on Monday. It's dropped 11pc from its April peak.

Stocks have fallen in past days as Greece struggles to strike a debt deal after months of talks. Creditors are growing increasingly frustrated with the country's government after it rejected the terms of an aid package again last week and deferred a payment due to the International Monetary Fund.

Greece pulled back on budget concessions to its creditors in new proposals yesterday.

"People are more focused about macro like Greece," said John Plassard, vice president at Mirabaud Securities in Geneva.

"We may come into a phase where we get a bit of a relief in this stressed market. The risk-reward is now more favourable for an entry point in the Europe equity market."

The Stoxx 600 extended its lowest level since February and has lost 4.2pc in six days. A technical analysis signal shows the gauge is close to being oversold, with the relative strength index near 30. Last time it reached that level, in December, the index was about to start its biggest first-quarter rally since 1998.

Irish Independent

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