Tuesday 18 September 2018

Facebook share falls drag on markets

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

Reuters

US stocks rose yesterday as a jump in oil prices lifted energy stocks, though another drop in Facebook's shares curbed the gains on the Nasdaq Composite and the S&P.

Facebook's shares fell 5.2pc, the latest in a series of steep falls, the latest on reports that the US Federal Trade Commission was investigating the company over its use of personal data after a whistle-blower said a political consultancy improperly accessed information on 50 million users to sway public opinion.

The stock sank almost 7pc on Monday, sparking a broad sell-off. US and European lawmakers have demanded an explanation of how the consultancy gained access to the data and why Facebook failed to inform its users, raising broader industry questions about consumer privacy.

Shares of Snap fell nearly 4pc, while Twitter's shares tumbled 9.2pc.

Closer to home, European stocks recovered - led by banking stocks - while tech stayed under pressure after concerns over increased regulation and taxation of large companies in the sector prompted selling overnight on Wall Street.

The pan-European STOXX 600 index ended 0.5pc higher, while Britain's FTSE rose 0.3pc after hitting a 15-month low in the previous session.

Europe's tech stocks lagged the market, but stronger financial sector moves meanwhile helped offset weakness among media and telecoms stocks.

The pan-European STOXX 600 index ended 0.5pc higher, while Britain's FTSE rose 0.3pc after hitting a 15-month low in the previous session.

However, in Dublin all of the Irish bank shares as well as insurer FBD closed down.

The overall Iseq index closed down 0.67pc at 6625.77

Irish Independent

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