Europe markets extend four-month low

Global equity markets fell yesterday and the euro hit a five-week low against the dollar as euro zone leaders held an emergency summit to discuss Greece’s future in the currency bloc, while commodities sold off on China demand worries.

DUBLIN

Most stocks were weaker on the Dublin market yesterday, with “volumes thinner than normal” according to one analyst. Very few stocks outperformed, with most ending the day lower.

CRH declined on the day, in line with its peers, falling 2.2 per cent to €24.50. Bank of Ireland fell 0.29 per cent, to 34 cents, with 108 million shares traded.

Food names fared well on the day. There was a bit of buying in Glanbia, with 380,000 shares traded. The stock finished the day up 1.6 per cent, at €18. Kerry Group also increased, rising 0.7 per cent to €66.84.

Overall, the Iseq index fell 0.91 per cent, to 6,084.13.

LONDON

Britain’s benchmark equity index dropped to its lowest level in about six months, hit by persistent concerns over Greece and a pullback in mining stocks as metal prices fell.

Rolls-Royce fell 5.4 per cent, extending a 6.3 per cent drop in the previous session when the company cut profit forecasts, after investment banks Natixis, Investec, Bernstein and RBC all reduced price targets on the stock.

Rolls-Royce was among the weakest FTSE 100 stocks in percentage terms, while property group Land Securities was the top gainer, rising 1.6 per cent after UBS raised its rating on the stock to "buy" from "neutral".

Airlines, which stand to benefit from a fall in oil prices, were among the shortened list of top-flight risers. Easyjet rose 14p, to 1590p, while British Airways owner International Airlines Group climbed by 3.8p, to 488p.

Marks & Spencer shares declined after the retailer posted a drop in quarterly clothing sales after a colder May impacted demand for its spring and summer collections.

The blue-chip FTSE 100 index closed down 1.6 per cent at 6,432.21 points, around its lowest since mid-January.

EUROPE

European stocks extended a four-month low, coming within 0.1 per cent of a correction, as Greece attempted to secure a rescue and stay in the euro.

The Stoxx Europe 600 Index lost 1.6 per cent at the close of trading, reversing gains of as much as 0.4 per cent. Germany’s Dax and France’s Cac 40 were also hit, each shedding about 2 per cent.

Technip tumbled 8.3 per cent after saying it would take a one-time charge of €650 million for the restructuring. That dragged energy producers to the one of the worst declines among industry groups in the Stoxx 600. Miners and car makers also tumbled.

Axel Springer rose 2.2 per cent after people familiar with the matter said it was in talks to combine with and ProSiebenSat.1. Among gainers, Evonik rose 2.4 per cent after UBS lifted its target price for the stock, while Svenska Handelsbanken gained 2.5 per cent after a similar upgrade from Deutsche Bank.

US

US stocks pared declines, with the Standard & Poor’s 500 Index rebounding after it fell through its average price for the last 200 days, amid Greek debt talks.

The S&P 500 slipped 0.1 per cent, to 2,065.80, at lunchtime in New York, after earlier falling as much as 1.2 per cent and reaching a three-month low.

JPMorgan, Citigroup and Bank of America were all down between 2 and 3 per cent in early trading. Shake Shack fell 10.3 per cent to after a Morgan Stanley rating cut to "underweight", according to theflyonthewall.com.

Tesla fell 4.7 per cent in early trading after a Deutsche Bank downgrade to "hold" from "buy". Depomed soared as much as 39 per cent to a record high after Horizon Pharma announced a hostile offer for the drugmaker. Horizon fell 2.5 per cent.

– (Additional reporting: Bloomberg, Reuters)