Markets tentative ahead of expected BoE rate cut
Published 04/08/2016 | 02:30
The overall ISEQ index of Irish shares was flat yesterday, trading up slightly at 5732.35 having risen by 0.17pc or 9.67 points in afternoon trading.
Irish commodities stocks suffered the largest losses of the day in Dublin, with Ormonde losing 23pc and Providence Resources down 8pc.
Shares in Permanent Tsb suffered further losses with stocks down a further 3pc.
Bank stocks remain under press generally after last week's stress tests by the European Banking Authority.
Bank of Ireland shares did stage a recovery however, with stocks in the bank rising by 5pc.
Markets in London and Paris were also down, with the FTSE 100 dropping by 0.2pc and the CAC losing 0.3pc.
In Germany, the DAX showed a rise of 0.2pc while the IBEX 35 also lost 2pc in Spain.
In the UK, a closely watched survey said the British economy is now shrinking at the fastest rate seen since the Brexit vote, making an interest rate cut by the BoE "a foregone conclusion".
Financial data company Markit said its monthly all-sector Purchasing Managers' Index chalked up the steepest month-on-month decline on record after big falls in activity at private-sector services, manufacturing and construction firms.
Figures released yesterday noted that the UK economy shrank by 0.4pc in the three months to September, the fastest contraction seen in the country since 2009.
Earlier yesterday, Britain's National Institute of Economic and Social Research said it expected the economy to shrink 0.2pc between June and September and saw a 50pc chance of recession by the end of next year.
The euro was trading at 1.11 against the dollar and 83 pence sterling. The pound was trading at $1.32.
In the US, there was further good news on the employment front, with the government revealing that 179,000 jobs were created in July, surpassing economists' expectations.
AIG stocks rose after the company said it will buy back $3bn of its own stock following a 6.3pc increase in second-quarter profit. S&P 500 companies posting results this week include Time Warner and Priceline.
HSBC rose 3.7pc after the bank said it will buy back $2.5bn of its own shares. Societe Generale climbed 4.3pc and Credit Agricole.
ING rose 8pc as the biggest Dutch lender said that its second-quarter profit more than tripled.