Weak corporate earnings hit European stocks

Crude oil prices rose on Thursday to their highest in three weeks on hopes for a pact among oil producers to cut output, while the dollar slipped on bets that interest rate hikes by the Federal Reserve would be more gradual than it has suggested.

As a result, world stock markets were mixed. Shares in Europe fell following disappointing earnings reports, while Wall Street indexes advanced initially.

Tumbling energy prices, stemming from worries about weakening demand from world number two economy China, have roiled financial markets.

This was a concern the US Federal Reserve cited as a factor for keeping its key policy rate at 0.25-0.50 per cent on Wednesday.

DUBLIN

The Iseq index closed down 2 per cent at 6,214 similar to other European bourses. Building materials group CRH led the downward slide, falling 3.6 per cent to €23.57 as uncertainty about the global economy spooked investors.

The temporary spike in oil prices saw Ryanair shares drop 3.5 per cent to €13.37. However, the performance was better most of its rivals with Air France falling 6.5 per cent.

Paddy Power rose 1.7 per cent to €135.80 largely because of "technical buying" ahead of its merger with Betfair on Monday.

Packaging group Smurfit Kappa was down 4.3 per cent to €20 on the back of weak French pricing data and a broker downgrade.

Bank of Ireland was down nearly 1 per cent in line with other financials across Europe.

LONDON

Britain's top stock index retreated after hitting a three-week high earlier in Thursday's session, weighed down by Ashtead and travel stocks hit by rising oil prices.

Equipment rentals company Ashtead was the top faller on the blue-chip FTSE 100 index, down 7.8 per cent after US peer United Rentals reported an underwhelming set of fourth-quarter results.

The blue-chip FTSE 100 index was down 1 per cent at 5,931.78 points at its close after earlier rising over the 6,000.00 level, its highest since early January.

The benchmark index is still down around 5 per cent following a commodities-led sell off earlier this year.

Also among the fallers was energy supplier Centrica, down 4.9 per cent following a downgrade to "sell" by Societe Generale.

Travel and leisure stocks, including cruise operator Carnival and airlines IAG and easyJet all fell between 3 and 6.4 per cent, hit by a rallying oil price as Brent Crude touched a three week high.

EUROPE

European shares fell on Thursday as disappointing earnings from Roche weighed on the healthcare sector and euro zone banks also came under pressure.

The pan-European FTSEurofirst 300 index was 1.7 per cent lower at 1,318.22 points, while the euro zone’s blue chip Eurostoxx 50 index also fell, down 2.1 percent.

Roche dropped 3.8 per cent after 2015 net profit from the Swiss drugmaker fell short of expectations and the company's forecast of an improvement this year met a sceptical market response.

Fellow pharmaceutical firm Novartis fell 3.8 per cent after many target price cuts from brokers following its own disappointing results on Wednesday.

Euro zone banks slid 3.7 per cent, with several Italian lenders being suspended “limit down” for the second time in as many days.

Spain's Repsol, meanwhile, rose 5.3 per cent after announcing a €2.9 million writedown on its 2015 results, after oil prices plunged well below the $50 a barrel they had forecast as an adverse scenario.

NEW YORK

Wall Street was slightly higher in volatile trading on Thursday as a decline in biotech stocks offset gains in energy shares.

The Nasdaq biotech sector was down 3.5 per cent, with Celgene's 4.8 per cent fall weighing the most.

Incyte's 11 per cent drop also dragged the index lower, after the company said it would stop a mid-stage study on a key cancer treatment.

Facebook surged 12.2 per cent to $106.23 after the world's biggest social network reported a 52 per cent jump in revenue.

The US Federal Reserve kept interest rates unchanged on Wednesday and said it was “closely monitoring” global economic and financial developments, while keeping an optimistic view of the US economy.