Global worries over economic upturn weigh on sentiment

ISEQ: 2,963.66 (-7.64) Settlement Date: June 7thCONCERNS ABOUT the pace of the US economic recovery continued to weigh on investor sentiment across the globe, with yesterday's slight drop in jobless benefits failing to assuage fears about the state of the US economy.

The Iseq index of shares tracked the global trend, though did not fall as sharply as some of its European counterparts, finishing 0.3 per cent off.

However, notably the market did not take account of the exchequer figures, which were published as markets closed yesterday evening.

Bank of Ireland was one of the best performers in terms of percentage gains, as the stock benefited from the easing off of selling pressure and an increase in buyers following its MSCI reclassification earlier this week. The stock closed up 16 per cent at €0.16.

Aer Lingus was also actively traded yesterday, ticking back up to €0.81, a gain of 4.5 per cent, as talks between the airline and pilots got under way at the Labour Relations Commission.

Ryanair also advanced, buoyed in part by its rival airline’s industrial relations troubles, according to one trader. The airline added 1.5 per cent to €3.61.

Meanwhile, construction stocks had a challenging day, as discouraging US construction figures continued to unsettle investors. CRH, which is highly dependent on the US market, shed 1.5 per cent to €14.66.

Fellow construction stock Grafton was down 1.85 per cent, while insulation provider Kingspan finished down marginally at €7.20.

On the bond markets, euro zone peripheral countries continued to struggle, after ratings agency Moody’s downgraded Greece again, estimating that it has a “50:50” chance of default.

Yields on Irish 10-year government debt continued to hover over 11 per cent yesterday.