Friday 14 December 2018

European shares attempt to rebound following slump as trade war fears heighten

  • Irish Stock Exchange sees sharp increase
  • Hong Kong stocks closed lower on Friday
  • Arrested Huawei exec set to appear in court
(stock picture)
(stock picture)
Independent.ie Business Desk

Independent.ie Business Desk

European shares attempted on Friday to recoup losses sustained during the previous session's global selloff but lacked thrust from Wall Street and Asian markets for a significant rebound.

The euro zone's STOXX index was up 0.9pc after falling 3.2pc during Thursday's rout, which was triggered by fears the U.S. dispute with China could worsen to a full-out trade war.

More than €2.5bn was wiped off the Irish Stock Exchange yesterday as shares on global stock markets plunged.

Heavyweights CRH, Ryanair, Aryzta and Kingspan all saw significant share price drops.

Bank of Ireland, AIB and insurer FBD were all weaker as the global slump represented a fall of 3.11pc on the Irish market.

The Iseq saw a sharp increase in trading on Friday morning which seems to reflect the volatility of the market.

Futures for US indexes S&P 500 were trading down 0.6pc after ending the previous session slightly in negative territory but well above their session lows.

Traders were focused on incoming U.S. jobs data later in the session and whether it could shed any light on the health of the economy and the pace at which the Federal Reserve will raise interest rates.

Shares in German healthcare group Fresenius were the top losers in early trading, down 10.5pc and set for their worst day since 2002.

Associated British Foods shares fell 2.5pc after reporting that trading at its Primark fashion chain was challenging in November.

Meanwhile, Hong Kong stocks closed lower on Friday, marking the end of a volatile week of trading, as the arrest of a senior Huawei executive dampened hopes of a lasting resolution to the U.S.-China trade conflict.

The Hang Seng index fell 0.4pc, to 26,063.76, while the China Enterprises Index lost 1.1pc, to 10,369.40 points.

Meng Wanzhou, chief financial officer of Huawei Technologies Co Ltd, who is under arrest in Canada is set to appear in a Vancouver court on Friday for a bail hearing as she awaits possible extradition to the United States.

The incident dimmed hopes that China and the United States can bridge their differences during the 90-day ceasefire agreed on Saturday.

Reuters

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