Business Irish

Thursday 18 January 2018

Europe down amid worrying US data

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Sean Duffy/Reuters

The ISEQ overall index of Irish shares fell 0.23pc yesterday, losing 13.51 points to close at 5804.47.

Ryanair had the largest gains of the day, with shares in the carrier rising 3pc. Pensions firm IFG had gains of 2.7pc while Applegreen stocks rose by 1.6pc. Hotel group Dalata lost 3.8pc, while there were losses of 3.7pc for Kenmare Resources. Yields continued to fall on European bond markets as investors retreated to the safety of sovereign bonds. Irish 10-year government bonds were trading at 0.5pc.

In London, the FTSE 100 lost 0.4pc in value. European markets were also down, with the DAX losing 0.1pc in Germany while the French CAC index fell by 0.3pc.

The S&P 500 index and the Dow were down as investors fretted about weak economic data and disappointing earnings from Ford.

The carmaker reported weak China sales and declared that the US car industry's long recovery was at an end, triggering a 9.6pc fall in its shares.

A report by the US Labor Department showed that the number of people claiming unemployment benefits rose more than expected to 266,000 for the week ended July 22.

On the currency markets, the pound had its largest fall against the euro in two weeks and is now trading €1.18. The drop came as traders speculated on the likelihood of an interest rates rise by the Bank of England on August 4. The euro also gained slightly against the dollar, trading at $1.10.

Consumer confidence across the euro area remains in negative territory. Confidence had recovered slightly in June but dipped again in July according to data released yesterday by Eurostat. Industrial sentiment was also down across the EU.

Irish Independent

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