Wednesday 16 October 2019

Irish shares up but trade fears hit US

Traders work at their desks whilst screens show market data at CMC Markets in London. Photo: Reuters
Traders work at their desks whilst screens show market data at CMC Markets in London. Photo: Reuters

Bloomberg

Irish shares rose slightly yesterday, gaining 0.2pc, as investors digested UK Prime Minister Theresa May's victory in a vote of confidence in her leadership.

But most US stocks fell, with small caps leading declines, as trade tensions continued to weigh on financial markets.

The S&P 500 Index see-sawed in early trading as three stocks fell for every two that gained in the benchmark, with banks again under pressure. Real estate and utilities led gainers.

The dollar edged higher as US jobless claims came in below estimates.

Investors are studying the latest moves in the global trade tug of war, after Chinese importers resumed buying US soybeans and Beijing reiterated that its officials were in close contact with Washington counterparts on negotiating details of a broader deal.

But worries remained as China detained a second citizen of Canada for questioning, further heightening tensions between the two countries, and Trump administration officials on Wednesday signalled that Beijing will have to do more to end the tariff war.

US Commerce Secretary Wilbur Ross said yesterday that there have been "frequent conversations" with China, which gave a good road map to resolving many issues.

In the UK, the pound and the Ftse 100 fluctuated after Ms May's victory.

In Dublin the Iseq closed at 5536.33, with IFG Group rising over 7pc after it announced new growth plans.

Among the heavily-weighted stocks, CRH rose 1.16pc and Kerry Group by 1.18pc. AIB continued to fall, losing almost 2pc yesterday.

Irish Independent

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