Sunday 25 August 2019

Europe slides on interest rate worries

The Irish Stock Exchange logo is displayed at the entrance to the headquarters in Dublin
The Irish Stock Exchange logo is displayed at the entrance to the headquarters in Dublin

Peter Flanagan

Irish shares were little changed on Thursday as traders digested the contradictory messages on interest rates from the US Federal Reserve and Bank of England.

By the close in Dublin the ISEQ Overall Index had fallen 0.15pc, or 9.73 points, to close at 6,531.46.

Bank shares struggled through the session, after the European Central Bank announced it would run a new set of stress tests on banks across the continent next February.

Bank of Ireland dipped 1.7pc to close at 32c, while Permanent TSB fell 3.7pc to €4.22. Permanent TSB failed the previous EU stress test.

Applegreen dropped 2.3pc to end the day at €4.69. The filling station firm has been hit by steadily falling oil prices.

C&C gave up 2.3pc to finish the session at €3.63. A report from the ESRI said food and drink businesses would be disproportionally hit if Britain were to leave the EU.

On the other side of the board, Ryanair gained 1pc. The company released stellar interim results earlier this week.

Independent News & Media, the publisher of this newspaper, added 1.2pc to reach 17c.

Elsewhere, European stocks fell for the first time in four days, led by declines in commodity and energy producers.

The Stoxx 600 lost 0.4pc, while the UK's FTSE 100 slipped 0.8pc. The Dax Index in Frankfurt gained 0.4pc while France's CAC 40 Index closed up 0.5pc.

"There are technical sellers coming in," said Benedict Goette, of asset-management firm Compass Capital in Zurich. "There is concern about a policy error from the Fed after yesterday's remarks. The earnings so far have been a mixed bag. (Bloomberg)

Irish Independent

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