Tuesday 24 October 2017

European stocks end week down as prospects rise of Fed move

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

Colm Kelpie

A third day of declines sent European stocks to a weekly drop after a US jobs report did little to diminish prospects for a Federal Reserve rate rise this year.

By the close in Dublin, the Iseq Overall Index was down 2.41pc, or 144.49 points, to end the trading day at 5,839.16. The leaders included insurance group FBD, which increased 0.1pc to €6.70, while Fyffes rose 3.6pc to €1.46.

On the other side of the board, the laggards included drinks group C&C, which dropped 6.4pc to €3.55 and Paddy Power Betfair fell 4.9pc to €94.29.

Elsewhere, the Stoxx Europe 600 Index fell 0.9pc at the close, as all industry groups except miners declined. US employers added 156,000 jobs in September, a Labor Department release showed.

While that missed the average economist forecast, it followed an increase in August that was more than previously estimated.

Recent strong data have raised trader odds for another Fed hike, adding to worries about a tapering of European Central Bank stimulus.

The Stoxx 600 capped its fourth weekly decline in five, down 0.9pc, after a rally from a June low ended in early September.

Investors withdrew money from the region's equity funds for a record 35th week, a report from Bank of America Merrill Lynch showed yesterday.

By contrast, a gain of 0.9pc in the FTSE 100 Index yesterday put it within 1pc of its 2015 record close. Miners including BHP Billiton and Anglo American gained at least 2.2pc after Bank of America recommended buying the shares, calling the sector "underowned."

Exporters in the UK benchmark rallied this week as updates about Brexit sent the pound tumbling. The currency earlier plunged 6.1pc in about two minutes, a move that traders said was exacerbated by computer-initiated sell orders.

Additional reporting by Bloomberg

Irish Independent

Also in Business