Business World

Tuesday 27 June 2017

Global stock market rout continues

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

John Mulligan and Reuters

Global stocks fell sharply yesterday as investors continued to fret about the health of the world's economies. European bourses fell despite data that showed better than expected business confidence in Germany.

The emissions scandal at Volkswagen also weighed on auto shares.

In the UK, mining shares were pummelled. Shares in Glencore slumped nearly 10pc after Goldman Sachs cut is price estimate for the stock due to a poor outlook for commodity markets.

In Ireland, the ISEQ Overall Index fell 2.87pc, or 182.88 points, to 6,197.81.

A number of shares declined sharply, including Ryanair. It tumbled 4.3pc, or 59 cent, to €13.20 despite announcing that it will pay hand back 29.4 cent per share to investors using the €398m in proceeds from the sale of its near-30pc Aer Lingus stake.

Share in CRH slumped 5pc to €23.78, while ferry group Irish Continental sank just over 2pc to €4.26. There was little to be cheer about, with even Bank of Ireland only managing a 0.6pc rise to 33.4 cent after comments on Wednesday by its chief financial officer that it will exceed its five-year lending target and that the resumption of dividends is getting closer.

Shares in packaging giant Smurfit Kappa fell 3.1pc to €24.52.

The UK's FTSE-100 fell 1.1pc, while Germany's DAX was 1.9pc lower and France's CAC-40 was also down 1.9pc.

Mining and energy shares were heavily hit in the UK. The negative sentiment towards the stocks wasn't helped as US company Caterpillar said it plans to axe 10,000 jobs by the end of 2018 due to a decline in commodity and energy activity worldwide. Apart from Glencore's decline, Anglo American was off 5.1pc, while shares in BHP Billiton fell 2.2pc.

Irish Independent

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