Sunday 21 January 2018

ISEQ fall mirrors trend across Europe

An Aer Lingus plane
An Aer Lingus plane
Colm Kelpie

Colm Kelpie

IRISH shares fell yesterday in line with the major European stocks as investors weighed US retail sales and unemployment data to see if the Federal Reserve will decide to pare back stimulus measures.

By the close in Dublin, the ISEQ Overall Index was down 0.97pc, or 42.61 points, to end the trading day at 4337.52.

Economists believe the US Central Bank may scale back its multi-billion dollar monthly bond purchases at its meeting next week.

The leaders on the Dublin market included exploration company Providence Resources, which increased 4.8pc to €2.74, while Independent News & Media was up 11.3pc to 12 cents.

It was also a positive end to the day for fruit company Fyffes, which rose 2.3pc to 85 cents.

On the other side of the board, the laggards included insulation company Kingspan, which fell 3pc to €11.96, and insurance giant FBD which fell 2.2pc to €16.62.

Aer Lingus slipped 2pc to €1.26.

Elsewhere, European stocks declined to a two-month low.

The Stoxx Europe 600 Index dropped 1pc at the close, for its lowest level since October 9.

The benchmark gauge has retreated for three days as US economic data fuelled speculation the Fed could slow the pace of additional stimulus sooner than forecast.

National benchmark indexes dropped in all 18 western European markets.

The UK's FTSE 100 slid 1pc, France's CAC 40 fell 0.4pc and Germany's DAX lost 0.7pc.

"According to various sources, tapering is expected between January and March, so earlier could have some negative impact," Christoph Riniker, head of strategy research at Julius Baer Group in Zurich, said.

"Our view is that there is no year-end rally as the performance in the year was very good and investors are too optimistic at the moment."

US stocks fell, sending the Standard & Poor's 500 Index to a one-month low.

Treasuries declined and the dollar gained versus most major peers as growth in retail sales added to speculation the Federal Reserve will slow stimulus. (Additional reporting Bloomberg)

Irish Independent

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