Tuesday 31 March 2015

Political tensions weigh heavily on the global markets

Published 22/07/2014 | 02:30

Rising tensions following the shooting down of the Malaysian Airlines plane last week further unnerved global markets yesterday
Rising tensions following the shooting down of the Malaysian Airlines plane last week further unnerved global markets yesterday

Rising tensions following the shooting down of the Malaysian Airlines plane last week further unnerved global markets yesterday.

The US and Europe have threatened Russia with more sanctions.

"The conflict in Gaza, the Ukraine crisis - these are the main topics," said Soeren Steinert, who helps manage about $24bn in assets as associate director for equities trading at Quoniam Asset Management in Frankfurt.

"I can't see any panic selling. It is only just that people are not willing to buy. There is no conviction that the market should be falling further."

In Ireland, the ISEQ Overall Index mirrored declines in other European indices. It slipped 0.5pc, or 23.50 points, to end the session at 4,677.21.

Bank of Ireland shed just over 4pc to close at 23.6 cent.

Home builder Abbey lost 2.4pc to finish at €11.05.

In the UK, Greencore fell 2.5pc, or 7.1p, to £2.72.

National benchmark indices fell in 14 of 18 western European markets.

The UK's FTSE 100 slipped 0.3pc. France's CAC 40 lost 0.7pc. Germany's DAX declined 1.1pc to the lowest level since May 9.

Commerzbank fell 1.9pc to €10.74.

Germany's markets regulator BaFin found high operational risks and problems in the lender's internal accounting system in 2013, Capital magazine reported, citing an unreleased BaFin report.

Tesco added 1.3pc to £2.88 after saying Unilever's Dave Lewis will replace Philip Clarke as chief executive officer on October 1.

The retailer also said first-half sales and trading profit are below expectations.

A measure of European travel and leisure companies fell 1pc. Air France-KLM Group lost 3.7pc to €8.27.

TUI retreated 3.5pc to €10.89.

Irish Independent

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