Thursday 19 September 2019

European stocks hit by US peers

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

Bloomberg

European equities fell yesterday, tracking a drop in US stocks led by tech shares and after data showed wavering confidence among US home-builders. The arrest of the CEO of Renault saw shares in the carmaker tumble and also weighed on sentiment.

The Stoxx Europe 600 Index was down 0.73pc after the close in Europe as a sell-off in the Nasdaq hurt European tech stocks, while the sobering message from a gauge of housing market sentiment added to investor concerns over the impact of interest rates.

European equities slumped last week as concerns over a possible no-confidence vote against British Prime Minister Theresa May as well as persisting Italian budget woes pushed investors to exit.

Traders continue to watch US-China trade talks as tension between Chinese President Xi Jinping and US Vice-President Mike Pence curbed optimism that relations would improve at Group-20 meetings.

"Markets remain very jumpy, with significant negative sentiment and so even a single story can be enough to change momentum on the day," said John Roe, head of multi-asset funds at Legal & General Investment Management.

In Ireland, the Iseq Overall Index tumbled 1.4pc to 5,900. Battered stocks included hotel group Dalata, which fell 3.6pc to €4.82, while packaging giant Smurfit Kappa was down nearly 3.5pc at €25.05.

Gainers included mining equipment firm Mincon, which advanced 3.1pc to €1.30 on the back of rises in mining company stocks.

The UK's Ftse-100 dipped 0.2pc. Germany's DAX was down 0.8pc and France's CAC-40 was also 0.8pc lower.

Irish Independent

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