Sunday 18 August 2019

European stocks snap losing streak

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

Reuters

European shares enjoyed a recovery yesterday, snapping their longest losing streak since October 2016 as the cyclical sectors which had driven a market-wide sell-off made a comeback.

Financial services, cars and technology sectors were among the best-performing, driving the market higher while recovering oil prices also helped support energy stocks.

"European equities suffered recently from the stronger euro and some early profit-taking before the end of the year," said Valentin Bissat, European equity strategist at Mirabaud Asset Management.

"After the recent underperformance, we should see cyclicals outperform again in the next few weeks with long-term interest rates rising and a steeper yield curve."

Investors continued to digest a raft of earnings updates, with most of the top movers reacting to results.

French telecoms firm Bouygues led gains, up 5.2pc after raising its profitability goal for the year.

Facilities and catering firm Sodexo however fell as much as 4pc amid disappointment over its margin guidance and annual revenues coming in slightly below consensus forecasts.

In Ireland, the ISEQ Overall Index ended the session 1.7pc higher, at 6,839.53.

Movers included Bank of Ireland, which rose 2.3pc to €6.35 despite a Moody's report that said there remains a risk of further provisions being necessary to cover the mortgage tracker scandal among lenders.

Shares in Ryanair rose 2.6pc to €17.35, while Paddy Power Betfair was 4.5pc higher at €98.65.

The UK's FTSE-100 edged 0.2pc higher. France's CAC-40 was up 0.6pc and Germany's DAX rose 0.5pc.

Irish Independent

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