Sunday 17 December 2017

No safety as European shares plunge

Shares in CRH fell
Shares in CRH fell


European markets plunged yesterday amid a continuing sell-off in mining stocks, doubts about China and the continuing fall-out from the Volkswagen scandal.

There was no safezone, with indices including those in the UK, France and Germany all yielding more than 2pc.

In Ireland, the ISEQ Overall Index declined 1.29pc, or 81.32 points, to close at 6,222.96.

Among the decliners was food group Aryzta, which has its secondary listing in Dublin. The Swiss-Irish firm, whose origins lie in IAWS, said its full-year underlying net profit declined 5pc. Its shares in Dublin fell 1.7pc to €41.53.

Shares in Ireland's biggest company, CRH, fell 3.2pc to €23.85, while travel software firm Datalex declined 4.3pc to €2.20. Insurance firm FBD held steady at €6.70.

The UK's FTSE-100 sank 2.46pc, while France's CAC-40 was 2.76pc lower. Germany's DAX was down 2.12pc. The FTSE 350 mining index tumbled 9pc, its lowest since December 2008. Rio Tinto, BHP Billiton and Antofagasta all fell more than 4.5pc. Glencore sank 29pc to an all-time low after Investec raised doubts about the company. Anglo American shares fell 10.1pc. "One cannot deny the fact that investors are - if the (Glencore) share price is telling you anything - extremely concerned about the near-term outlook," Charles Stanley market analyst, Jeremy Batstone-Carr, said.

"It may be too soon to believe a bottom is in (for commodity prices)," London Capital Group analyst Brenda Kelly said.

On the deal-making front, Vodafone was hit by news that tie-up talks between the network operator and Liberty Global had collapsed. Vodafone shares were down 4.8pc, their lowest level in 10 months.

Irish Independent

Promoted Links

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Also in Business