Wall Street re­treats from re­cent highs

JPMor­gan Chase and Cit­i­group credit card lend­ing losses weigh on in­vestors

The Irish Times - Business - - MARKETS - COLIN GLEE­SON – (Ad­di­tional re­port­ing: agen­cies)

Record close for FTSE, boosted by fresh fall in ster­ling over dead­locked EU talks

There were record closes for the UK’s FTSE and Ger­many’s bench­mark in­dex Dax, but it was a slow day on the Iseq in­dex.

DUBLIN

Bank of Ire­land traded up 1.2 per cent to re­turn to re­cent highs yes­ter­day and was the main mover on the Iseq in­dex, which fin­ished the day flat.

“Bank of Ire­land has been un­der­per­form­ing but had a good, strong day, and was the big­gest mover on the mar­ket,” noted an an­a­lyst with Davy.

In avi­a­tion, Ryanair fin­ished the day down 1 per cent. “The rest of the sec­tor ral­lied, while it un­der­per­formed,” said the an­a­lyst. “There was news that Air

Ber­lin has been sold to Lufthansa, but Ryanair was never go­ing to be a bid­der for it.” Build­ing ma­te­ri­als group

CRH traded down 0.5 per cent, while pack­ag­ing com­pany

Smur­fit Kappa, fol­low­ing re­cent pres­sure and a profit warn­ing on Wed­nes­day, made back some of the ground it lost, fin­ish­ing the day up 1 per cent. Other movers in­cluded Paddy Power, which was up 0.5 per cent on light vol­ume.

In­de­pen­dent News and Me­dia fin­ished flat on the day, af­ter the com­pany waited un­til the clo­sure of the stock mar­ket to an­nounce the de­par­ture of its chief ex­ec­u­tive Robert Pitt fol­low­ing a board­room spat with chair­man Les­lie Buck­ley. Glen­veagh Prop­er­ties, fol­low­ing its suc­cess­ful ini­tial pub­lic of­fer­ing, fin­ished down 0.5 per cent fol­low­ing some profit tak­ing. Cairn Homes moved up 0.5 per cent “on the strength of Glen­veagh over the past cou­ple of days”.

LON­DON

Bri­tain’s top share in­dex en­joyed a record close yes­ter­day, boosted by a fresh fall in ster­ling af­ter the Euro­pean Union’s chief Brexit ne­go­tia­tor, Michel Barnier, said talks were in dead­lock.

Bri­tain’s FTSE 100 ended the day up 0.3 per cent, at 7,556.24 points, its high­est ever clos­ing level. The heav­ily in­ter­na­tion­ally-ex­posed in­dex ear­lier hit its high­est in­tra­day level in three months as the pound tum­bled. Bud­get air­line

easyJet gained 2.5 per cent af­ter Ger­man peer Lufthansa said it would sign a deal to buy part of in­sol­vent car­rier Air Ber­lin, adding to signs of con­sol­i­da­tion in the in­dus­try.

En­ergy sup­pli­ers Cen­trica and SSE re­cov­ered from their ear­lier losses, clos­ing up 1.9 and 2.5 per cent re­spec­tively af­ter a draft Bill to cap elec­tric­ity prices re­vealed few de­tails about the specifics of the cap, dis­pelling in­vestors’ fears.

EUROPE

Ger­many’s Dax rose above 13,000 points for the first time in its 30-year his­tory, as rel­a­tively at­trac­tive val­u­a­tions and op­ti­mism about global eco­nomic growth con­tin­ued to lure in­vestors.

The ex­port-ori­ented in­dex, the big­gest in the euro zone with a mar­ket value of €1.2 tril­lion, rose as much as 0.2 per cent to 13,002 points be­fore end­ing up 0.1 per cent, while the broader pan-Euro­pean Stoxx 600 in­dex was flat.

The Dax is up 13 per cent so far this year and is on course to end its sixth straight year of gains, as equities in the re­gion found sup­port in years of ex­pan­sion­ary mon­e­tary poli­cies and signs of con­tin­ued strength in cor­po­rate earn­ings.

Yes­ter­day it got an ex­tra lift as the euro pulled back and wor­ries eased over a big po­lit­i­cal cri­sis in Spain.

NEW YORK

US stocks re­treated from re­cent record highs yes­ter­day as AT&T shares sank af­ter it said it lost sub­scribers in the last quar­ter and banks slipped fol­low­ing re­sults from JPMor­gan and Cit­i­group.

JPMor­gan Chase and Cit­i­group said they had set aside more money for credit card lend­ing losses in the third quar­ter, stok­ing con­cerns about con­sumer credit, even as they re­ported re­sults that topped an­a­lyst es­ti­mates. JPMor­gan shares eased 0.9 per cent and

Cit­i­group fell 3.4 per cent. The Dow Jones In­dus­trial Av­er­age fell 31.88 points, or 0.14 per cent, to end at 22,841.01, the S&P 500 lost 4.31 points, or 0.17 per cent, to 2,550.93.

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