Business World

Saturday 17 August 2019

Lacklustre day for markets as oil price up

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

It was a lacklustre day for European stock markets yesterday, with oil in focus again as it hit its highest price since the middle of 2015 after global producers agreed to cut supply.

Oil rose by as much as 6.5pc yesterday after Opec and some of its rivals reached their first deal since 2001 to jointly reduce output to try to tackle global oversupply.

On Saturday, producers from outside the Organisation of the Petroleum Exporting Countries, led by Russia, agreed to reduce output by 558,000 barrels per day, short of the target of 600,000 bpd but still the largest contribution by non-OPEC ever.

The performance of Ireland's ISEQ Overall Index during yesterday's session mirrored that of other European bourses. It slipped 0.7pc to 6,395.02.

Bank of Ireland shed 2.1pc to just over 23.2 cent. It declined after Fairfax cut its remaining holding in the bank last Friday.

Other movers included Ryanair, which was down 0.8pc at €14.45, and CRH, which fell just under 1pc to €32.05.

The UK's FTSE-100 closed down 0.9pc. Germany's DAX was down 0.1pc and France's CAC-40 was flat.

The FTSE-100 slipped after gaining in the previous five sessions in a row, with outsourcing group Capita extending its recent losses and precious metals miners tracking a fall in gold prices to 10-month lows.

Capita fell for a third straight day and closed 5.3pc lower after a profit warning late last week and its decision to sell its asset management business left analysts questioning the British outsourcing group's strategy.

Russian gold and silver miner Polymetal slumped 4.7pc after RBC cut its rating on the stock to 'sector perform' and as gold prices fell to a 10-month low on expectations of a US rate hike this week.

Reuters

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