Saturday 16 December 2017

European shares dip on China's weak data

Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange
Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange
Sarah McCabe

Sarah McCabe

WEAK data from China and Standard & Poor's recent downgrade of Italy's credit rating saw European shares fall yesterday, and Irish stocks were no different. The ISEQ Overall Index fell 22.22 points, or 0.55pc, in afternoon trading, to 4028.83. Of the 44 share prices listed, 16 slipped while 14 were up and 14 stayed static.

Petroneft saw the biggest losses, down 10pc to 3c, followed by Datalex, down 6pc to 83c. Grafton's share price shed 3pc to €5.45. The building materials supplier said this week that sales in the first half of 2013 rose 1.5pc to €1.07bn, despite a less favourable sterling-euro exchange rate in the period, and sales at its Irish merchanting business grew for the first time since 2007.

All of the banks listed on the ISEQ were down. AIB dropped 4pc to 5c, Permanent TSB fell 2pc to 3c and Bank of Ireland shed 1pc to 17c.

Zamano was up 13pc to 9c in light trading, the biggest gains of the day. Hot on its heels was Ormonde Mining, up 11pc to 5c. Donegal Creameries was up 2pc to €4.65, while Glanbia rose 1pc to €10.34. Paddy Power was also up by just under 1pc to €66.51 as it emerged that the company is on the verge of launching its first product to offer "real money" sports betting on Facebook.

Across the globe, indexes were impacted by new data from the General Administration of Customs in Beijing that showed China's exports fell 3.1pc in June from a year earlier.

National benchmark indexes fell in 12 of the 18 western-European markets. The UK's FTSE 100 lost 0.4pc and France's CAC 40 slid 0.2pc. The composite Stoxx 600 had fallen 0.1 pc to 294.23 by yesterday afternoon; in London three stocks dropped for every two that climbed.

Fears

Germany's DAX fell slightly. With German firms selling ever larger amounts to China, Deutsche Bank economist Gilles Moec said the Eurozone's biggest economy would feel its slowdown the most.

Italian government bonds saw a muted seven basis points rise after S&P downgraded the country's credit rating to BBB on Tuesday. Spanish bonds felt the biggest impact, lagging most other Eurozone debt as the S&P cut raised fears about its own weak credit rating.

Elsewhere, Tesco saw its shares up 1.1pc to £3.47 as Exane BNP upgraded its recommendation on the company to outperform.

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