Sunday 25 August 2019

American tax progress helps put floor under global stocks

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


World stocks clawed back more losses yesterday after spending much of the week in the red - helped by signs of progress in US tax reform and strong corporate results, though many hurdles remain to secure passage of a tax cut deal.

Despite their bounceback, however, global stocks were still on track for a second straight week of losses, their longest losing streak since August. The MSCI world equity index - which tracks shares in 47 countries - was up 0.1pc on the day, but was heading for a 0.1pc fall on the week.

European shares were sluggish in early deals after the previous session's strong recovery, with the STOXX 600 index falling back 0.1pc as disappointing company results and downgrades weighed.

British stocks fell back into the red yesterday, ending a short-lived recovery, as takeover interest boosted telecommunications company Sky and construction firm Carillion plummeted after warning it would breach debt covenants.

Carillion collapsed more than 48pc after a third profit warning. The FTSE 100 marked its second week of losses as a worldwide sell-off took the shine off risky assets, and Thursday's bounce proved to have little staying power.

In Dublin the Iseq was up slightly to 6883.34. Hotelier Dalata announced its first Maldron brand hotel in the UK. It will lease the 365-bedroom Maldron in Newcastle city centre from UK Commercial Property Trust on a 35-year lease. Dalata shares closed up 2.33pc at €5.69.

Irish Independent

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