Ryanair and Paddy Power weigh on ISEQ

THE ISEQ index of Irish shares lost more than 0.5pc yesterday, fuelled by falls of more than 2.5pc at Ryanair and Paddy Power Betfair.

Paddy Power was cut to under-perform by Credit Suisse, which said a rebound in the stock over the past month has gone too far, with the US gambling market set for significant liberalisation. Ryanair is facing twin headwinds of rising fuel costs and potential industrial relations problems. The ISEQ closed at 7,136.03.

In the US, stocks were mostly lower in the afternoon, while a software glitch delayed the start of trading in London.

The Nasdaq 100 dropped for the first time in five days as investors tossed big tech names overboard. The Dow Jones Industrial Average erased most of its gain, while the benchmark S&P 500 Index turned negative amid drops in Microsoft, Facebook and Amazon.

US bonds rallied and the dollar rebounded from lows amid speculation investors were reducing risk.

After weeks in the doldrums, equities had managed to regain some swagger in recent days. The global expansion narrative remains intact. Treasury yields are holding below the psychological barrier of 3pc.

In addition, US tech shares – the drivers of past rallies – had been notching successive records until yesterday at least. Investors will now be watching the G7 meeting today and tomorrow for clues on the trade outlook, as well as this month’s meetings of both the Federal Reserve and the European Central Bank to gauge the path of interest rates.

The Stoxx Europe 600 Index fell after disappointing data on eurozone exports and German factory orders. The euro had rallied amid talk of an end to the ECB’s stimulus. The Turkish lira jumped after the central bank raised interest rates by more than expected.