Sunday 21 January 2018

FTSE-100 lags European stock markets

Traders work on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange

Reuters

The majority of European bourses were in positive territory yesterday, with the UK's FTSE-100 the stand-out laggard.

The dollar also gained ground on the euro, with the latter slipping below $1.20.

"The euro got a little bit over its skies when it traded over $1.20," said Brad Bechtel, managing director FX at Jefferies in New York.

"The market is very stretched on the position," he said.

"It's a little bit of profit-taking and some healthy correction going on the euro's side, which is driving some of the dollar trades."

The euro, which has rallied in recent weeks on expectations for a shift in European Central Bank monetary policy this year, suffered a little after a cooler-than-expected reading of the Eurozone's December consumer price index on Friday.

Lacklustre inflation pressure in Europe has been accompanied by a strengthening economic recovery across the continent and solid economic growth in China and the United States, fuelling risk appetite.

In Ireland, the ISEQ Overall Index ended yesterday's session 0.14pc higher at 7,184.09.

Gainers included Ryanair, which advanced almost 1.2pc to €15.45. Bank of Ireland rose 1.7pc to €7.87, while AIB advanced almost 1.3pc to €5.52.

Decliners included hotel group Dalata, which fell 2.4pc to €6.01. Kerry Group was 2.2pc lower at €91.80.

The FTSE-100 shed 0.38pc. Germany's DAX was up 0.36pc and France's CAC-40 was 0.3pc higher.

Mothercare sank 27.5pc to a record low after saying full-year profit would be much lower than earlier expectations as it did not see any short-term improvement to the UK market. Mothercare's update was a poor start to a busy week for UK retailers reporting Christmas trading.

Irish Independent

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