Iraq air strikes continue to shake European markets
Published 09/08/2014 | 02:30
IRISH shares fell for an eighth day yesterday as US President Barack Obama's authorisation of air strikes against militants in Iraq accelerated a retreat in European stocks that started weeks ago.
By the close in Dublin, the ISEQ Overall Index was down 0.43pc or 19.57 points to end the trading week at 4530.97.
The leaders in Dublin included Smurfit Kappa, which rose 0.8pc to €16.23, while Kingspan closed up 0.4pc to €12.15.
On the other side of the board, Kerry Group fell 1.5pc to €54.25 and Providence slipped 1.5pc to €1.34. The ISEQ is down 0.2pc on the year to date.
The Euro Stoxx 50 has dropped 2.1pc this week, closing at its lowest level since March 14. It lost 1.2pc on Thursday after European Central Bank President Mario Draghi said geopolitical risks in countries such as Ukraine could hurt the economic recovery.
Germany's DAX Index dropped as much as 11pc yesterday since its July 3 record, while France's CAC 40 Index lost more than 10pc in intraday trading from its six-year high in June.
The German gauge fell 0.3pc yesterday, closing 10pc below its peak. The CAC 40 ended the day little changed.
"The correction is a wake- up a call," said Ros Price, chief investment strategist at Seven Investment Management in London.
"Yes, it is true that markets have weathered lots of risks, but people are rightly becoming worried now.
"We're being assaulted on all sides. You have to wonder whether the recovery since 2009 has peaked.
"I think there's a good chance that maybe it has." (Additional reporting Bloomberg)