Business Irish

Monday 14 October 2019

Irish shares hit by Brexit chaos

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

Bloomberg

Irish shares had €2bn wiped off them yesterday, with losses accelerating as Theresa May spoke in a raucous House of Commons.

The Iseq index is now close to the lows seen after the Brexit vote in June 2016, after Ms May announced plans to delay a parliamentary vote on whether to accept her Brexit deal.

In total, the index lost more than 2.5pc of its value, with Irish banks AIB, Bank of Ireland and Permanent TSB all hit.

But it was a worse day for Ryanair, Smurfit Kappa and CRH, which lost 5.07pc, 4.92pc and 3.51pc respectively.

US equities also slumped in early trading as traders took a grim view of the outlook for global growth and trade.

Losses in banks and energy companies sent the S&P 500 Index toward an eight-month low following the gauge's worst week since March. Technology shares helped limit the decline, as Facebook and Microsoft advanced.

Auto companies led a retreat in the Stoxx Europe 600 Index as concern about the strength of China's economy lingered. The dollar jumped.

Investors need to steel themselves for the possibility of the UK leaving the European Union without a deal, worsening already fragile sentiment in financial markets as traders gauge whether the Federal Reserve will slow its tightening path amid lingering trade-war fears.

Meanwhile, data has started to hint at slowing growth in the world's top two economies, with signs that demand remains sluggish in China coming on the heels of a moderating US labour market.

Irish Independent

Also in Business