Saturday 19 October 2019

Irish and US stocks dip as investors wait

Irish stocks were down slightly in afternoon trading yesteday, mirroring morning trading in the US where investors were awaiting fresh catalysts on trade and monetary policy. Stock photo
Irish stocks were down slightly in afternoon trading yesteday, mirroring morning trading in the US where investors were awaiting fresh catalysts on trade and monetary policy. Stock photo

Irish stocks were down slightly in afternoon trading yesteday, mirroring morning trading in the US where investors were awaiting fresh catalysts on trade and monetary policy.

Origin Enterprises was up more than 7pc as investors welcomed results that were ahead of expectations.

Glenveagh Properties rose more than 1.5pc, after telling the market it was ahead of schedule on house sales for this year.

But losses elsewhere dragged the index about 0.3pc lower around 3pm - heavily weighted stocks Ryanair and Paddy Power Betfair were among fallers.

Energy producers led losses on the S&P 500 Index as reports showed the US trade deficit widened in 2018 to a 10-year high and private companies added fewer jobs than analysts forecast last month. The dollar advanced for a sixth day.

The Stoxx Europe 600 Index spiked, the euro briefly fell to a session low and most European bonds rose after a report that central bank officials are poised to cut their economic forecasts by enough to justify another round of loans for banks.

Canada's dollar extended losses after the Bank of Canada toned down its conviction that interest rates will need to go higher.

The pound slipped on speculation UK Prime Minister Theresa May could be in for another bruising vote in Parliament on Brexit, and the Australian dollar sank after disappointing economic data spurred bets on interest-rate cuts.

Trade remains high on investors' agenda, with President Donald Trump said to be pressuring US negotiators to cut a deal with China soon in hope of fuelling a market rally.

Meanwhile, falling bond yields reflect traders taking a more cautious stance as Morgan Stanley predicted benchmark Treasury yields will drop as low as 2.35pc by the end of the year. Traders will also get plenty to ponder from the European Central Bank's policy decision and the monthly US jobs report later in the week.

Elsewhere, Chinese shares outperformed and Japanese equities dropped. Commodities were led lower by oil after an industry report showed a bigger-than-expected build-up in US crude stockpiles.

Bloomberg

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