European equities go into reverse

After two days of gains, investors’ optimism faded yesterday, sending European equities into reverse and suggesting that the recent rally may be faltering.

The Euro Stoxx 50 index was down 0.7 per cent at the close, though the London market managed to avoid succumbing to the prevailing mood, as mining stocks rebounded.

Oil shares also turned higher in late trade after a spike in US crude prices, following data that showed a surprise drop in crude inventories.

US stocks fell in early trading in New York as weak earnings reports from Walt Disney, Macy’s and Fossil reverberated across the consumer sector.

DUBLIN

The Iseq finished down slightly compared to Tuesday’s closing level, as major stocks slipped.

Drinks group C&C was one of the better performers on the day, climbing 2.6 per cent to €4.18, after it published full-year results in line with forecasts and a higher than expected dividend.

Permanent TSB fell almost 11 per cent to €2.04 after its interim management statement, which cautioned in relation to external headwinds, including increased regulatory costs and a delay to deleveraging its UK portfolio as a result of Brexit referendum uncertainty.

Building materials group CRH fell 0.7 per cent to €25.55, while Glanbia, Ryanair and the Green Reit were also among the fallers. Kerry closed at €80.20, down 0.4 per cent, as most of Tuesday's gain was erased.

Paper and packaging group Smurfit Kappa added 0.6 per cent to €23.59, while IFG Group closed up 0.8 per cent at €2.22 after a positive trading update.

LONDON

The FTSE 100 edged up 0.1 per cent, outperforming the rest of Europe, following a rebound in the mining and oil sectors on the back of stronger commodity prices. The UK mining index rose 2.6 per cent after prices of copper, aluminium and zinc all climbed.

Shares in Glencore, Anglo American and BHP Billiton rose between 2.3 and 5.4 per cent. Experian recouped early losses to close down just 0.4 per cent after the world's biggest credit data company reported unchanged full-year pretax profits against a backdrop of adverse foreign exchange movements.

Among mid-caps, William Hill slumped 6.6 per cent after a lacklustre update that reaffirmed a difficult trading environment. Shares are down 27 per cent since late February, after a profit warning in March.

EUROPE

In Germany, the Dax fell 0.7 per cent and the Cac 40 in France lost 0.5 per cent. Spanish, Greek and Italian markets all dropped with the latter dragged down by falls of more than 6 per cent for financial stocks Banco Popolare and Banca Popolare di Milano.

EON fell 6.4 per cent after posting a decline in revenue amid a slide in power prices. The German utility slid on concerns about how much new capital Germany's largest utility will need to fund the nation's exit from nuclear power.

French outdoor advertising company JC Decaux sank 9.8 per cent as it forecast a decline in second-quarter organic revenue growth, while Italy's Mediaset dropped 4.7 per cent after it posted revenue that fell short of projections.

Deutsche Post added 2.6 per cent after saying that operating profit rose at the fastest rate in 13 quarters.TUI slipped 1.3 per cent after the tour operator said it would sell a unit offering adventure-travel activities to focus on mass-market holidays.

NEW YORK

The Dow Jone fell 217.23 points, or 1.21 per cent, to 17,711.12, the S&P 500 lost 19.93 points, or 0.96 per cent, to 2,064.46 and the Nasdaq dropped 49.19 points, or 1.02 per cent, to 4,760.69.

Disappointing profit reports from Disney and Macy's hurt stocks, with Disney the biggest drag on the Dow and the S&P 500, and Macy's weighing on retailers. – (Additional reporting: Bloomberg / Reuters.)