Spanish rally nudges up Euro stocks
Trading on Iseq flat as FTSE slips, weighed down by falls for housebuilder stocks Pound rises to four-week high against the euro on currency markets
Spanish equities rebounded yesterday, reassured by weekend demonstrations for a unified Spain and a poll lead for parties opposed to Catalan independence. Spain’s Ibex benchmark rose 2.4 per cent, outperforming a 0.1 per cent gain for the pan-European Stoxx 600 index. DUBLIN
The Dublin market was flat, with trading volumes low as a result of the bank holiday. The Iseq index closed up 0.2 per cent, with few dramatic moves. Building materials group
CRH, the largest stock on the index, lost 1.2 per cent to ¤32.08, while insurance group FBD was another faller, closing down 1.1 per cent at ¤8.90 and
Ryanair nudged down 0.3 per cent ahead of its half-year results this morning.
Elsewhere, most stocks posted gains, with Paddy Power Betfair and Permanent TSB
Group both adding more than 2 per cent, Smurfit Kappa rising 1.2 per cent to ¤25.76 and Glanbia up 1.6 per cent to ¤16.60. Glanbia, Paddy Power Betfair and Smurfit Kappa all publish earnings updates tomorrow.
The real estate investment trust stocks Green Reit and Hibernia Reit also advanced. LONDON
The FTSE 100 fell 0.2 per cent, weighed down by falls for housebuilder stocks. Bellway and
Berkeley lost 1.1 per cent and 1.4 per cent respectively after analysts at Barclays downgraded both of them.
Shares in HSBC fell 1.5 per cent despite reporting a five-fold jump in quarterly profits as broker Investec maintained its sell rating on the stock. EasyJet shares rose almost 2 per cent after the discount airline clinched a deal to buy up part of Air Berlin’s operations for ¤40 million. Mining and resources giant
Glencore rose 0.8 per cent after falling earlier in the session following a trading update and a report saying it would cancel its secondary listing in Hong Kong due to lack of interest from investors.
Sterling hit a four-week high against the euro, bolstered by the view that the Bank of England
will this week raise interest rates for the first time in over a decade. Stocks that benefit from pound weakness, such as British American Tobacco and Diageo, fell. EUROPE
Spanish banks Caixabank and Banco de Sabadell jumped more than 4 per cent, leading Spain’s Ibex index 2.4 per cent higher.
Spain’s Bankia gained 2.2 per cent after reporting a smaller-than-expected drop in net profit and as the lender made progress in shrinking its bad loan portfolio.
European tech stocks joined a global tech rally on the back of solid earnings from US stalwarts and on strong pre-orders for Apple’s iPhone X. European iPhone suppliers STMicro, Dialog Semi and AMS rose 2.3 per cent, 5.6 per cent and 4.8 per cent respectively. Dutch paints maker Akzo Nobel, under pressure after rejecting a lucrative takeover offer and two profit warnings, confirmed talks with smaller US rival Axalta Coating Systems and rose 0.7 per cent. US
Wall Street pulled back from record-high territory yesterday, weighed down by a drop in Merck shares and a report that US. lawmakers are discussing a gradual phase-in of much-anticipated corporate tax cuts.
The Dow Jones Industrial Average fell 85.45 points, or 0.36 per cent, to 23,348.74, the S&P 500 lost 8.24 points, or 0.32 percent, to 2,572.83 and the Nasdaq Composite dropped 2.30 points, or 0.03 percent, to 6,698.96.
The tech-heavy Nasdaq touched an intraday record high earlier in the session before pulling back.
Apple shares gained 2.3 per cent after analysts pointed to strong demand for the iPhone X. Merck shares fell 6.1 pe rcent after a setback to its key cancer medicine. The stock was among the top drags on the S&P 500 and Dow industrials.
General Motors dipped 2.8 per cent after Goldman Sachs downgraded the company’s stock to “sell” from “neutral”.
– (Additional reporting: Reuters)