Saturday 26 May 2018

Bourses sink on weak data and concerns

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

European bourses ended the second day of the week in the red, as weaker than expected data from the region's biggest economies, falling oil prices and a weak performance by stocks in Asia weighed on sentiment.

IMF boss Christine Lagarde said yesterday that while the global recovery is continuing, it's too slow and fragile.

Despite fresh rate cuts from the ECB, economic activity has remained subdued in Europe, with companies cutting prices again in March.

"It really dents hopes that the weakness we saw in January and February is just related to temporary concerns about the global economy. There is something more fundamental going on," said Jennifer McKeown at Capital Economics.

"Without ECB stimulus I suspect that things would have been a lot worse but it certainly is evidence that we are still in a deflationary environment in the Eurozone." Ireland's ISEQ Overall Index was among yesterday's fallers, losing 1.02pc, or 63.90 points, to end the session at 6,223.19.

Stocks on the move included Bank of Ireland, which fell 1.9pc to 26 cent.

Ryanair declined just under 1pc to €13.96, while CRH fell 2.3pc to €24.20.

Ferry group Irish Continental lost 2.3pc, while packaging giant Smurfit Kappa shed 1.08pc to €21.95.

Bucking the trend was hotel operator Dalata, which gained 2.1pc to close at €4.70. Drinks group C&C fell almost 3.4pc to €3.86.

The UK's FTSE-100 fell 1.2pc, while Germany's DAX was down 2.6pc. France's CAC-40 was 2.18pc lower. Volkswagen declined nearly 3.8pc, and other car makers also fell. Retailer Tesco declined 1.7pc after Deutsche Bank downgraded its rating on the stock to 'hold' from 'buy'.


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