Iseq flat amid fears for UK growth
The ISEQ Overall Index of Irish shares was flat yesterday, down 0.03pc at 5,815.
Commodities stocks had the biggest gains of the day, with Ovoca Gold and Aminex both recording rises of 12.5pc.Shares in Providence Resources rose by 3pc. Tech firm Malin Corp saw gains of 5pc. Shares in Permanent Tsb rose by 4pc while AIB was up slightly at 0.1pc.
In Europe, markets were down slightly on the news that the European Commission and the IMF both issued forecasts predicting a reduction in UK growth figures for 2017 in the wake of the Brexit vote. The DAX was down 1pc in Germany, in France, the CAC was down 0.8pc, and in London, the FTSE was trading down 0.1pc.
The IMF said that the impact of the Brexit vote will hit hardest in Britain itself, where the institution cut its 2016 growth forecast to 1.7pc, down 0.2 percentage points from its April forecast. It cut the 2017 UK forecast more sharply, by 0.9 percentage points, to 1.3pc.
The Commission said growth in the UK would slow this year to between 1.3 and 1.8pc. However the EC said a contraction of up to 0.3 pc was likely next year.
Italian banks took further hits after a ruling from the European Court of Justice which quashed the possibility of more taxpayers' money being used to assist failing lenders. Shares in Monte dei Paschi di Siena fell by 3pc having been down over 7pc earlier in the day. The oldest bank in the world, MpS stocks have been hit by 75pc since the start of the year.
On the currency markets, the euro was trading at $1.10 and 84 pence sterling. The pound was down slightly against the Greenback, at $1.31. On the bond markets, German Bunds remain in negative territory, with 10-year bonds at -0.03pc.