Wall Street retreats from recent highs
JPMorgan Chase and Citigroup credit card lending losses weigh on investors
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.
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”.
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.
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.
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.