Business World

Friday 30 September 2016

Little movement as markets wait on Fed

Published 15/09/2015 | 02:30

Irish shares began the week with their third straight decline, as traders held fire ahead of the all important meeting of the US Federal Reserve later this week.
Irish shares began the week with their third straight decline, as traders held fire ahead of the all important meeting of the US Federal Reserve later this week.

Irish shares began the week with their third straight decline, as traders held fire ahead of the all important meeting of the US Federal Reserve later this week.

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By the close in Dublin the ISEQ Overall Index had fallen 0.65pc, or 41.62 points, to close at 6,405.94.

The index opened lower and after a brief spike trended down for the rest of the day.

The Fed will meet on Thursday and Friday. Chairman Janet Yellen has long signalled that she will increase interest rates for the first time since 2008 this month. However the gyrations in the stock market in recent weeks, especially the apparent slowdown in China, has increased the chance that Ms Yellen will hold fire for this month at least. Traders have been selling in recent days ahead of a possible interest rate hike.

Applegreen slipped 3.6pc to €4.80. The service station firm fell even as it reported half year profits that increased more than 40pc year on year.

The banks had a difficult day. Bank of Ireland lost 2pc to close at 34c, while Permanent TSB dropped 1.3pc to end the day at €4.75.

Construction materials giant CRH dipped 1.9pc. On the other side of the board, Datalex gained 2.1pc to hit €2.14. The hotels firm is likely to raise millions to fund new acquisitions.

It was a similar narrative around Europe, with dealers largely avoiding the market. The Stoxx Europe 6000 Index dipped 0.6pc, while in London the FTSE 100 closed 0.5pc lower. The CAC 40 in Paris dived 0.7pc while the DAX Index in Frankfurt was little changed.

“I think we are seeing that tug-of-war in the market again, and nothing is going to matter until we know what the Fed is going to do,” said Michael Gayed, a money manager at Pension Partners in New York.

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