Business World

Saturday 22 October 2016

Markets fade on Morgan Stanley results


Published 20/10/2015 | 02:30

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters

European stockmarkets were mixed yesterday, with earlier gains on the back of slightly better than expected Chinese growth numbers having been eroded later as Morgan Stanley reported a slump in its quarterly profit, adding to signs of woe among the world's biggest banks.

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Morgan Stanley's profit plunged 42pc, capping a generally downbeat quarter for big US banks after investors fled the bond, currency and commodity markets.

The record third-quarter loss reported by Germany's Deutsche Bank earlier this month has refocused investors' minds on the big global banks after a decade of financial strife, regulation and technology-driven change.

In Ireland, the ISEQ Overall Index was one of the European bourses that ended the day in positive territory. It edged 0.17pc higher to 6,297.72.

Shares in UTV Media soared 8.7pc to €2.50 after it inked a deal to sell its TV stations to ITV for £100m. ITV shares were 0.3pc lower.

Bank of Ireland lost ground gained earlier, to end the session flat at 35.7 cent. Property firm Green REIT rose just under 1.7pc to €1.52. Davy Stockbrokers issued said that fears of an oversupply in Dublin's office market by the end of 2018 are probably overdone, with firms including Green among the beneficiaries.

Smurfit Kappa rose 1.6pc to €24.30, while Paddy Power gained 1.1pc to €99.60.

The UK's FTSE-100 dipped 0.4pc. Germany's DAX was 0.6pc higher and France's CAC-40 was virtually unchanged.

The price of Brent crude fell, sending stocks, including Tullow Oil, lower. It shed over 6pc yesterday.

Drug company Shire rose 1.1pc after the US Food and Drug Administration asked the company for another clinical study in relation to a new drug application.

Irish Independent

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