Stocks pause as Covid re­bound hopes wilt

Dublin closes lower with ICG one of only a few stocks to fin­ish in the black FTSE 100 in­dex wipes out gains for week after record surge in US coro­n­avirus cases

The Irish Times - - Markets -

Euro­pean stocks paused yes­ter­day after gains through the week as an­other record surge in US coro­n­avirus cases dulled op­ti­mism from a brisk re­cov­ery in China’s ser­vices sec­tor.

DUBLIN

Dublin fin­ished the week lower with the Iseq in­dex down 1.1 per cent with most stocks fall­ing into the red.

Ryanair, which an­nounced yes­ter­day that Ir­ish pi­lots had agreed a pay cut, and con­firmed that it, Bri­tish Air­ways and Easy­jet were end­ing a le­gal chal­lenge against the Bri­tish gov­ern­ment over its quar­an­tine pol­icy, was among the fall­ers. It closed down al­most 1 per cent at ¤10.91. Banks were also lower, with

Bank of Ire­land los­ing 2.4 per cent to ¤1.78 and AIB down 1 per cent to ¤1.13.

Other fall­ers were ho­tel group Dalata, down 1.72 per cent to ¤2.85, Flut­ter, de­clin­ing 1.17 per cent to ¤118.35. FBD fell 1.47 per cent to ¤6.70 and Kingspan dipped 2 per cent to ¤58.30. Smur­fit

Kappa was flat at ¤28.26 while one of the few stocks to buck the down­ward trend was ICG, up nearly 2 per cent to ¤3.65.

LON­DON

UK stocks ended lower yes­ter­day, with the FTSE 100 in­dex wip­ing out gains for the week as a record surge in US coro­n­avirus cases made in­vestors ques­tion the chance of a swift global eco­nomic re­cov­ery.

The blue-chip FTSE 100 slid 1.3 per cent, with BP and Royal

Dutch Shell among the biggest drags, as the new in­fec­tions raised the spec­tre of fur­ther lock­downs and hit oil prices.

The do­mes­ti­cally-fo­cused FTSE 250 fell 0.4 per cent on the day, but still held on to a weekly gain.

Shares in Rolls-Royce, which have lost 57 per cent of their value since the be­gin­ning of the year, ex­tended losses to trade down 10 per cent after it said it was re­view­ing a range of op­tions to strengthen its balance sheet and po­si­tion it­self for re­cov­ery after the pan­demic.

Re­tailer Next fell 2.5 per cent after Gold­man Sachs down­graded the stock to “sell”,

while Pen­neys/Pri­mark-owner

AB Foods slipped 1.3 per cent after the US bank down­graded its stock to “neu­tral”.

Land Se­cu­ri­ties was up 0.5 per cent after it said like-for-like sales at its shop­ping cen­tres was at 80 per cent of the level achieved last year in the two weeks since non-es­sen­tial re­tail re­opened in Eng­land.

Prov­i­dence Re­sources was up 3.4 per cent in Lon­don after it ap­pointed a Bri­tish in­dus­try vet­eran and ex­pert on its Bar­ry­roe project to its board. En­gi­neer­ing com­pany

Meg­gitt slumped 4 per cent hav­ing risen by more than 6 per cent a day ear­lier after it said there were ini­tial signs of a re­cov­ery in air­line in­dus­try de­mand after a dif­fi­cult first half.

EUROPE

The pan-Euro­pean Stoxx 600 in­dex was largely flat after open­ing marginally higher, with trad­ing vol­umes thinned by a US mar­ket hol­i­day.

The bench­mark in­dex was headed for a 2.8 per cent weekly gain as hopes of a vac­cine and a se­ries of strong data pointed to a global eco­nomic re­cov­ery from the health cri­sis.

But in­vestors are scep­ti­cal of fur­ther gains in equities as the United States set a new daily global record for cases on Thurs­day, driv­ing sev­eral US states to de­lay their re­open­ing plans.

Paris’s blue-chip CAC 40 slipped 0.3 per cent as French prime min­is­ter Edouard Philippe re­signed ahead of a gov­ern­ment reshuf­fle by Pres­i­dent Em­manuel Macron de­signed to win back dis­il­lu­sioned vot­ers ahead of a pos­si­ble re-elec­tion bid.

Among in­di­vid­ual movers, Ger­many’s De­liv­ery Hero jumped 5.5 per cent after the take­away food com­pany said its or­der growth nearly dou­bled in the sec­ond quar­ter.

France’s util­ity firm EDF rose 4.8 per cent after it re­vised up­wards its 2020 nu­clear out­put tar­get.

WALL STREET

US mar­kets were closed yes­ter­day for a pub­lic hol­i­day.

– Ad­di­tional re­port­ing: Reuters

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