Monday 20 November 2017

FTSE dips and Ireland taps bond market

People queue outside the Bank of England in London, to exchange money for the new ten pound note featuring Jane Austen. Photo: PA
People queue outside the Bank of England in London, to exchange money for the new ten pound note featuring Jane Austen. Photo: PA

There was plenty of action in Europe yesterday, with the UK's FTSE-100 tumbling 1.1pc as Bank of England boss Mark Carney left interest rates unchanged but warned of a rise in coming months.

Sterling rose after his comments.

And with the threat of Eurozone deflation largely gone, the justification for the European Central Bank's massive asset purchase scheme is no longer there and policymakers should ease up on stimulus, said Bundesbank president Jens Weidmann.

At home investors snapped up €1bn of Irish 10 year and 20 year Government bonds, at yields of just 0.0689pc and 1.648pc - underlining the strength of demand for long dated euro-area sovereign debt.

In the United States, the S&P and Dow clawed back earlier losses to trade little change on Thursday morning, helped by a jump in energy stocks as oil prices jumped, but the Nasdaq was kept lower by a drop in consumer discretionary shares.

US stocks opened lower after a Labour Department report showed consumer prices rose more than expected in August, boosting the odds of another interest rate hike this year. In Ireland, the ISEQ Overall Index fell 0.5pc to 6,697.31, weighed down by Ryanair.

Shares in the airline fell 3.1pc in Dublin after a European Court of Justice ruling related to jurisdictional issues regarding employment disputes. CEO Michael O'Leary also confirmed that Ryanair will bid for a big chunk of Alitalia, including long-haul routes.

Shares in hotel group Dalata rose 3.2pc to €5.64, while Paddy Power Betfair was 1.9pc higher at €81.14. The UK's FTSE fell 1.1pc. Germany's DAX was down 0.1pc and France's CAC-40 was up 0.15pc.

Reuters

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