European markets hold their breath for Italian referendum result

European stocks extended their first weekly decline in a month as investors awaited Italy’s referendum and US jobs data gave a mixed picture of the economy to traders assessing prospects for higher interest rates.

Britain’s top share index edged downwards to a two-week low on Friday as investors avoided risky bets heading into the weekend.

The S&P 500 and the Nasdaq rose for the first time in three days, supported by gains in technology and health stocks, but the Dow slipped after a rally in bank stocks paused.

Dublin

The Iseq was down a little over 0.2 per cent.

Investors warn of asset sell-off if No wins big in Italy referendum

---

Fears for euro over landmark Italian referendum result

---

Stocks, dollar ease ahead of US payrolls report and Italian vote

---

European markets fall but energy stocks a bright spot after oil rise

---

Independent News and Media gained close to 2 per cent with a recovery in late afternoon trading, after being down as much as 2.6 per cent in the morning. The stock has fluctuated this week after revelations of a boardroom split over strategy.

Market behemoth CRH fell for a second straight day, down 1.5 per cent. The building materials company had been on a good run following the election of Donald Trump, who is expected to spend heavily on roads and bridges.

FBD Holdings weas up more than 3 per cent as the market contemplated renewed determination among policymakers to combat the cost of claims.

Kerry Group was up more than 2.3 per cent, making up ground lost on Thursday.

London

The blue-chip FTSE 100 closed down 0.3 per cent, taking its loss for the week to 1.6 per cent and snapping a three-week winning streak. Royal Bank of Scotland and Barclays were among the steepest fallers, down 3.2 per cent and 2.8 per cent respectively ahead of Sunday's constitutional reform vote in Italy.

Utility company SSE and consumer goods firms Imperial Brands and Associated British Foods were up by between 1.4 to 1.7 per cent. Imperial Brands was also boosted by Goldman Sachs, which reiterated its "buy" rating and put the firm on its conviction list, turning back two days of steep losses for the stock.

Rising gold prices meanwhile lifted precious metals miners, with Rangold Resources gaining 2.1 per cent and Fresnillo up 1.4 per cent.

Berkeley Group Holdings jumped 8.5 per cent after London's biggest homebuilder reported an increase in profit and set new five-year earnings targets.

Europe

Across Europe, Germany’s Dax closed down 0.2 per cent, the French Cac 40 fell 0.7 per cent, and the Italian FTSE MIB was relatively flat.

Banks and miners posted the biggest declines among industry groups in a reversal of the moves spurred by bets of stronger economic growth after Donald Trump’s US presidential win.

Consumer staples, utilities and real estate shares, which had lagged the post-election rally, advanced.

Stoxx 600 banks fell for the first time in four days, after reaching a two-week high. Banco Popular Espanol and Unione di Banche Italiane dropped at least 4.5 per cent.

New York

The S&P 500 technology and healthcare sectors saw a change in fortunes on Friday, giving the broader index its biggest boost.

Financials fell 1.14 per cent, the biggest losers, while industrials were flat. Goldman Sachs fell for the first time in four days, weighing the most on the Dow, while Bank of America, Citigroup and Wells Fargo were the top drags on the S&P.

A report from the US Labor Department showed that employers in private and public sectors hired more people last month than economists had expected, adding to the prospects of an interest rate hike when the Federal Reserve meets in the coming weeks. But investors reaction to Friday’s jobs report was muted as markets appeared to have already priced in a hike this month.

Starbucks fell 2.4 per cent to $57.11 after the coffee chain operator said Howard Schultz would step down as chief executive officer. Pandora surged more than 10 per cent after CNBC reported the internet radio company was in talks to sell itself to Sirius XM.

(Additional reporting: Bloomberg/Reuters/PA)