Tuesday 24 April 2018

European stocks erase losses despite terror attack in France

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


European stocks erased most of their intraday losses at the close yesterday, even as a terror attack in France dragged travel shares lower.

By the close in Dublin, the ISEQ Overall Index closed down 0.9pc, or 54 points, to end the trading week at 5,790.94.

The leaders on the Dublin market included banana company Fyffes, which increased 2.1pc to €1.48, while hotel group Dalata increased 0.8pc to €3.78.

On the other side of the board, the laggards included Paddy Power Betfair, which slipped 1.2pc to €102.40, while Kerry Group dropped 0.7pc to €80.72.

Elsewhere, the Stoxx Europe 600 Index closed less than 0.2pc lower, paring an earlier drop of as much as 0.7pc.

Travel and leisure shares posted the biggest slide, with EasyJet, Thomas Cook Group and hotel operator Accor down at least 2.7pc.

At least 84 people were killed when a driver ploughed his truck into a late-night crowd in Nice on Bastille Day. History has shown that the impact of terror attacks on stock markets tend to be short-lived.

Investors are also paying attention to earnings reports. Swatch Group tumbled 7.8pc after weak demand for its watches in Hong Kong, France and Switzerland led to an earnings plunge. Peer Richemont dropped 3.1pc.

"The attack in Nice is of course truly a horrible accident, but in terms of the market reaction, these kinds of shocks do not last very long," said Michael Kapler, an equities manager at Mittelbrandenburgische Sparkasse in Potsdam, Germany. "We have a little bit of a breather from the gains we've seen over the past few days.

"Right now the central banks are in focus again - how they are going to deal with the aftermath of Brexit. The focus is there, as well as on the earnings season both in Europe and the US," he said.

Irish Independent

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