Tuesday 12 November 2019

Commodities slump on Trump fears

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

Sean Duffy

The Iseq overall index traded down 0.71pc or 47.31 points to close at 6611.27 on Monday.

Commodities stocks were down across the globe, with concerns mounting about US President Donald Trump's ability to deliver changes to environmental legislation in the US. Shares in Aminex, Mincon and Providence Resources all posted losses over the course of the day.

Shares in Bank of Ireland lost 3.6pc, while FBD fell by 2.1pc and CRH was down 1.6pc.

Hostelworld shares surged by 7.6pc after analysts at Numis Securities upgraded the rating on the stock to "buy". Online airline retailer Datalex rose by 3.9pc while outsourcing firm CPL Resources had gains of 1.6pc. The downward pressure was mirrored across the Atlantic, with US stocks reversing course to trade lower after New York and other states challenged the Trump administration.

The move by a coalition of US states and municipalities comes barely two weeks after President Trump's administration had to pull legislation to overhaul US healthcare.

Wall Street has rallied since Mr Trump's election victory in November on promises that included tax cuts and looser regulations. But that rally has stalled of late as investors fret if these promises will be fulfilled given the administration's recent setbacks.

Factories across Europe and much of Asia posted another month of solid growth in March, rounding off a strong quarter for manufacturers, even though exporters fear a rise in US protectionism could snuff out a global trade recovery.

China led the way, with an official manufacturing index expanding at the fastest pace in nearly five years. Surveys on Monday also showed growth in Europe, Japan, India and much of emerging Asia.

In the eurozone, IHS Markit's final manufacturing Purchasing Managers' Index rose to 56.2 in March, far above the 50 mark that separates growth from contraction.

Additional reporting by Reuters

Irish Independent

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