Sunday 24 June 2018

ISEQ falls as rivals advance

Traders work shortly after the opening bell on the floor of the New York Stock Exchange. Photo: Reuters
Traders work shortly after the opening bell on the floor of the New York Stock Exchange. Photo: Reuters

Patrick Edwards

European stocks rose for a fourth day, led by energy companies, as weaker-than-forecast US data fuelled speculation the Federal Reserve won't rush to raise rates.

In a slow day in Dublin, the ISEQ closed down 27.58 points, or 0.4pc, to 6267.6 points as Merrion plunged almost 12pc to 30 cent and Kenmare extended recent declines to close down 2.8pc at 5.5 cents. Gainers included Dragon which rose 8.7pc to €9.66 as oil companies across Europe rose and INM tacked on another 1pc to close at 19.7 cents.

The Stoxx Europe 600 Index added 0.4pc to 407.87 at the close of trading, reversing an earlier drop of 0.4pc.

Oil stocks rose the most among industry groups. Transocean advanced 3.5pc after the owner of the rig that sank in the Gulf of Mexico in 2010 settled its remaining issues with BP.

US reports on existing home sales in April and May manufacturing missed projections, while jobless claims increased more than forecast last week. Federal Reserve officials didn't expect to raise interest rates in June, according to minutes released from their last meeting.

"At least in the very short-term, bad macro equals good news for stocks, as a Fed rate hike is pushed further down the road," said Ralf Zimmermann, an equity strategist at Bankhaus Lampe in Dusseldorf, Germany. "However, I have my doubts whether such an interpretation will last."

The Stoxx 600 fell earlier as a composite index showed manufacturing and services in the euro area expanded less than forecast in May. Germany's output missed projections, while France's contracted less than estimated.

The equity gauge erased a drop after a summary showed European Central Bank policy makers were satisfied with the start of their quantitative-easing programme when they met in April.

Stocks climbed 2.5pc in the past three days as the ECB said it plans to boost bond purchases in May and June.

Irish Independent

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