Wednesday 28 September 2016

Markets jittery on oil talks collapse

Reuters

Published 19/04/2016 | 02:30

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt

A sharp fall in oil prices initially weighed on European stock markets yesterday, after oil producers failed to reach agreement over the weekend on freezing output. That sent oil prices tumbling.

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The pan-European FTSEurofirst 300 index touched its lowest intraday level since last Wednesday, before turning higher to trade flat at 1,350.95, following US shares up in afternoon trade.

The index remains over 13pc off of lows hit in February, after concerns over a slump in oil prices and China's growth knocked European stocks back nearly 20pc in the first few weeks of the year.

"Although we reacted to the downside on the news yesterday, the broader market has recovered," said Atif Latif, director of Guardian Stockbrokers, referring to the OPEC meeting.

"The overall market is starting to absorb this news more easily than we have seen over the last few months, despite volatility in oil and oil and gas shares."

The rise up from the day's lows was aided by stocks such as those of companies in the travel industry, that benefit from a low oil price.

In Ireland, the ISEQ Overall Index was more or less unchanged at the end of yesterday's session, at 6,200.02.

Cavan-based insulation maker Kingspan rose 3.3pc, or 71 cent, to €22.30. Bank of Ireland shed just over 0.8pc to 24 cent, while Ryanair was flat at €13.07. Fruit distributor Fyffes gained 2.3pc to €1.55, and shares in forecourt retailer Applegreen declined 1.8pc to €4.70.

The UK's FTSE-100 was 0.15pc higher, and Germany's DAX rose 0.68pc. France's CAC-40 was up 0.26pc.

Travel operator TUI rose 3.2pc at one stage after its stock was upgraded to buy from hold by Berenberg. TUI continues to deliver a "superior performance", it said.

Irish Independent

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