Euro falls for fifth day as speculation grows over ECB interest rate cut

The euro fell for a fifth day against the dollar as signs of economic weakness in the single-currency bloc fuelled speculation that the European Central Bank will cut interest rates as soon as its meeting next week. The dollar rose as US manufacturing expanded at its fastest pace in 2 ½ years and improving economic data led to increased likelihood that the Fed will taper its stimulus programme.

DUBLIN

The Iseq closed down 0.3 per cent, in line with most European markets.

Bank of Ireland shares fell 5.19 per cent to €0.256, reversing strong gains on Thursday following the European regulatory ruling allowing the lender to continue counting €1.8 billion of State-owned preference shares as core Tier 1 capital if sold to private investors.

Ryanair was volatile ahead of its quarter two results expected on Monday, falling as low as €5.92 before stabilising to close at €6.10, the same as Thursday.

Cement-maker CRH fell 0.92 per cent to €17.735, broadly in line with its European peers, while drinks group C&C held on to gains from earlier in the week following strong results on Wednesday, falling 0.39 per cent to close at €4.30.

Aer Lingus rose 2.36 per cent to €1.433 with strong trading volumes relative to low levels over the past week.

LONDON

Royal Bank of Scotland was the top FTSEurofirst 300 faller after posting a surprise loss, missing profit forecasts by £1 billion. The part-nationalised bank closed 8 per cent lower, down 27.6p to 340p, as the bank returned to losses in the third quarter and warned that higher bad debt writedowns of up to £4.5 billion in the final three months of the year will lead to a significant full-year loss.

The wider FTSE 100 Index held firm, up 3.3 points to 6734.7, thanks to big share gains from mobile phone giant Vodafone due to reported bid interest from AT&T. Vodafone shares jumped 8p to 232.5p, a rise of 4 per cent.

Meggitt Plc tumbled 10 per cent to 513.5 pence, its largest decline since April 2009. The world's biggest provider of wheels and brakes for military aircraft cut its full-year sales forecast, citing short-term production problems at a unit. Meggitt predicted sales growth in low single digits, compared with a previous forecast for a mid-single-digit increase.

EUROPE

European stock markets eased off five year highs, after fresh signs of corporate earnings weakness pegged back car maker Renault. The company fell 4.4 per cent to €61.67 after its Japanese partner Nissan cut its full-year profit forecast by 15 per cent.

The pan-European FTSEurofirst 300 index closed down 0.3 percent at 1,289.52 points, slipping back from a 5-year closing high of 1,292.73 set in the previous session.

In Germany, Wacker Chemie dropped 3.6 per cent after Citigroup downgraded Europe's largest producer of polysilicon. EO, Germany's biggest utility, retreated for a third day as Citigroup added the shares to its least-preferred list.

Volkswagen, Europe’s biggest automaker, climbed 0.7 per cent to the highest price since at least 1992 after posting better-than-estimated third-quarter earnings.

In Switzerland, Julius Baer declined 3.5 per cent after Deutsche Bank lowered its rating for the country's third-largest wealth manager. Geberit, the maker of toilets, retreated 1 per cent after the manufacturer rallied on Thursday to the highest price since its initial public offering in 1999.

NEW YORK

Stocks on Wall Street slipped after data showing US manufacturing expanded briskly in October raised worries among some that the easy US money policy could be curtailed late in 2013, sooner than investors expected.

American International Group Inc fell 6.3 per cent to $48.39, making it the S&P 500's biggest loser, a day after the insurer reported third-quarter earnings that slightly beat expectations. The Dow Jones industrial average rose 24.50 points or 0.16 per cent, to 15,570.25. The Standard & Poor's 500 dipped just 0.35 of a point, or 0.02 per cent, to 1,756.19. The Nasdaq Composite Index slipped 5.85 points or 0.15 percent, to 3,913.86.

Chevron Corp fell 2.2 per cent to $117.33, accounting for about 14 points of negative drag on the Dow Jones industrial average, after the energy company reported disappointing results. Chevron's third-quarter revenue came in below expectations.

Boeing Co shares gained 1.4 per cent to $132.37 following Thursday's announcement that the company would increase production of its 737 aircraft to 47 planes per month by 2017 from 38 now.

First Solar Inc soared 18.4 per cent to $59.55 a day after the US solar panel manufacturer's results beat expectations and the company raised its full-year profit outlook.

Ford Motor Co shares slipped 1.2 per cent to $16.91, reversing an earlier gain of as much as 0.7 per cent, after the company reported October sales growth of 14 per cent.

Additional reporting: Bloomberg, Reuters