Europe's stocks decline after three-day rally as ISEQ runs out of steam
European stocks declined yesterday after the biggest three-day rally since April sent valuations to their highest level since 2009.
With the US market closed for Independence Day celebrations, activity was somewhat subdued in Europe.
“We’re seeing a pause in European markets today,” said Pierre Mouton, who helps oversee €5.9bn of funds at Notz, Stucki & Cie in Geneva.
“With the very good economic news from the US, investors should turn more positive, but I would expect some profit-taking when the earnings season begins. Valuations are attractive compared with other markets, but earnings don’t grow that much.”
Ireland’s ISEQ Overall Index had been in positive territory for the day, but ran out of steam towards the end of the session.
It slipped 0.62pc, or 29.91 points to close at 4,800.08.
Movers included property investment firm Green REIT. It advanced 2.8pc, or 3 cent, to €1.28. The company is understood to be in the process of acquiring an additional property in the Dublin suburb of Blackrock.
Hotel group Dalata was almost 1pc higher at €2.93, having been up as much as 1.4pc earlier in the day.
Shares in Aer Lingus pulled out of a climb, to end the day level at €1.42.
They had traded as much as 1.7pc lower earlier. Shares in Ryanair closed 1.8pc lower at €7.06. Both airlines yesterday revealed strong passenger growth for June.
National benchmark indices fell in 16 of the 18 western European markets yesterday.
France’s CAC 40 retreated 0.5pc, while the UK’s FTSE 100 rose less than 0.1pc. Germany’s DAX slipped 0.2pc.