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European shares slip from highs

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

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

REUTERS

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

European shares ended off highs yesterday as a bounce in tech stocks after results from chip-maker STMicro was offset by late slide among banks following downbeat comments from ECB president Mario Draghi over the health of the region's economy.

The eurozone STOXX index ended up 0.5pc, having risen as much as 0.8pc earlier in the day.

Mr Draghi acknowledged yesterday that economic growth in the eurozone was likely to be weaker than previously expected due to the fallout from factors ranging from China's slowdown to Brexit.

That drove European stocks off earlier highs while banks changed course, also hit by Mr Draghi downplaying the possibility of a new round of cheap funding for the battered sector.

"The ECB's toolkit is realistically limited... so it makes sense to keep the powder dry in what is a crucial few months for the global economy," said Nick Wall, fund manager at Merian Global Investors.

The eurozone's banking index fell 0.5pc, having risen more than 1pc before the ECB president's remarks.

Ireland's ISEQ Overall Index closed down almost 1pc, at 5,775.

Movers included Bank of Ireland, which shed 4.3pc to €5.45, while Ryanair lost 3.3pc to €10.62. Dalalex fell 11pc to €1.06.

CPL Resources jumped 7.7pc to €6.40 after a strong set of first-half results.

The UK's FTSE-100 declined 0.3pc. Germany's DAX was up 0.5pc and France's CAC-40 rose 0.6pc.

Shares in STMicro rose 10pc after the chip-maker gave an upbeat forecast for the second half of the year.

Irish Independent