Business World

Thursday 8 December 2016

Markets tumble again on Brexit woes

Reuters

Published 06/07/2016 | 02:30

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York

European stock markets fell yesterday as Brexit aftershocks continue to permeate the investment landscape.

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Sterling hit a new 31-year low against the dollar as the UK economy showed the latest signs of fracturing under the pressure of the Brexit vote.

Investor confidence was undermined by the Bank of England's warning on the economic risks of Brexit and its steps to ensure British banks keep lending, as well as news of a decline in US factory orders and reports of mixed manufacturing and service sector activity in Asia and Europe.

Bank of England governor Mark Carney said that the global loss of risk appetite could persist for some time and Chinese Premier Li Keqiang said it could be hard to sustain 6.7pc growth in the second quarter.

"Uncertainty is still very large," said David Keeble, global head of interest rate strategy at Credit Agricole Corporate & Investment Bank in New York. "This is just sort of a risk-off fear about what's going on."

In Ireland, the ISEQ Overall Index fell 2.6pc to 5,511.29.

The decline was steeper than that of its European peers.

It's now trading over 6pc lower than it was following its nosedive the day after the UK's EU referendum.

Bank of Ireland was battered, slumping 7.6pc to 17 cent. Ryanair fell 3.1pc to €11.19, while CRH was 3.2pc lower at €24.94.

Other movers included hotel group Dalata, which fell 2.8pc, while ferry group Irish Continental declined 1.7pc.

The UK's FTSE-100 ended the session up very slightly after Bank of England governor Mark Carney relaxed banks' capital buffer requirements.

Germany's DAX fell 1.8pc, while France's CAC-40 was 1.7pc lower.

Irish Independent

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