Business World

Thursday 18 October 2018

Trump-Korea row pulls equities down

Donald Trump (Niall Carson/PA)
Donald Trump (Niall Carson/PA)
Gavin McLoughlin

Gavin McLoughlin

European equities hit a two-week low as US President Donald Trump's decision to call off the June summit with North Korea's leader spurred concerns about geopolitical tensions hurting global growth.

The Stoxx Europe 600 Index fell 0.5pc to its lowest since May 8.

Oil stocks were among the biggest decliners, with Shell and BP dropping at least 1.8pc as crude prices retreated after Russia's energy minister reiterated that Opec and its partners will discuss phasing out supply curbs when they meet next month.

Carmakers also slumped following Trump's threat to impose sweeping new tariffs on imported vehicles.

In Dublin, the ISEQ index of Irish shares closed almost unchanged, losing just 0.01pc to finish at 7143.08.

Aryzta was the biggest weight on the index after a disastrous profit warning saw it lose more than 27pc, with a 0.7pc fall at the heavily weighted Ryanair also pulling the index down.

On the other side of the board, Independent News & Media, which publishes this newspaper, rose more than 6pc after a report said ABP boss Larry Goodman had been linked to stakebuilding in the media group.

Paddy Power Betfair rose more than 3pc, benefiting from improved sentiment after the US Supreme Court paved the way for a significant liberalisation of the American gambling regime.

US stocks clawed back some of their initial declines sparked by the cancellation of the North Korea summit, but remained lower in afternoon trading as investors assessed the broader impact on trade relations and economic growth.

Gold posted its biggest gain in a month and US Treasuries rose with the yen amid a move to safe-haven assets. (Bloomberg)

Irish Independent

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