Thursday 20 June 2019

Iseq resilient as global stocks swing

Traders look at price monitors as they work on the floor at the New York Stock Exchange (NYSE). Photo: Reuters
Traders look at price monitors as they work on the floor at the New York Stock Exchange (NYSE). Photo: Reuters

Gavin McLoughlin/Reuters

THE Iseq index of Irish shares has proved resilient so far this week amid global market volatility.

Yesterday the index closed down 0.17pc at 5481.16, proving itself relatively insulated from sharp falls in early trading in the US, albeit in relatively low trading volume.

A plunge in Apple shares sparked by the iPhone-maker's warning on revenues helped American stocks to fall some 2pc.

In addition, a key gauge of factory activity suffered its biggest drop in a decade, rattling investors.

One of the few bright spots was Celgene which surged 24pc after Bristol-Myers Squibb offered to buy the rival drugmaker for about $74bn (€65bn) in cash and stock.

Bristol-Myers Squibb fell 13.3pc on the news.

In commodities, oil prices were near flat in a session of volatile trade, pressured by concerns that slowing global economic growth could dent demand but drawing support from signs that Saudi Arabia is cutting crude output.

"Oil is flip-flopping on concerns of supply and demand," said Phil Flynn, an analyst at Price Futures Group in Chicago. "It's really a battle between the supply situation, which looks to be tightening, versus the possibility that demand will drop off."

US oil and gas executives' outlook turned negative for the first time since the low point of the last oil bust, according to results of a survey released yesterday by the Federal Reserve Bank of Dallas. OPEC oil supply fell in December by the largest amount in almost two years, a Reuters survey found, as Saudi Arabia made an early start to a supply-limiting accord while Iran and Libya posted involuntary declines.

Irish Independent

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