Saturday 20 July 2019

European shares stay in the red

The logo of Swiss bank UBS is seen in Zurich, Switzerland. Photo: REUTERS
The logo of Swiss bank UBS is seen in Zurich, Switzerland. Photo: REUTERS

Reuters

European shares opened in negative territory and stayed there yesterday as growth worries weighed on global markets and disappointing results from UBS added to the gloom and dragged the banking sector down.

The STOXX 600 fell 0.4pc, with bourses all across Europe losing ground as a new batch of corporate updates failed to change a risk-averse mood.

Oil prices, Asian shares and US equity futures also fell after the International Monetary Fund trimmed its global growth forecasts and a survey showed increasing pessimism among business chiefs as the rich and powerful gather at the World Economic Forum in Davos, Switzerland.

Swiss bank UBS fell as much as 4.7pc before clawing back some losses, but staying in the red, after its fourth-quarter earnings sent jitters across a sector which is struggling to recover after a catastrophic 2018 during which it lost nearly 30pc of its value.

In Ireland, the Iseq Overall Index was one of the few outliers, adding almost 0.3pc near the close, at 5,808.

Gainers included Ryanair, which added 3.4pc to €10.81 as rival Easyjet rose 6.3pc in London, even as it said the drop in airfares will accelerate.

Ferry operator Irish Continental was down 1.6pc at €4.84, and Permanent TSB lost 3pc, at €1.55 just before the close.

The UK's Ftse-100 shed 1pc. Germany's DAX was 0.5pc lower and France's CAC-40 also lost 0.5pc.

British online financial trading company IG Group was the worst overall performer on the STOXX 600, down 8.5pc as it reported a drop in profit.

Irish Independent

Also in Business