European shares finish week lower for first time in six weeks

A rally in mining shares lifted European markets on Friday, but they still ended the week lower for the first time in six weeks due to persistent concerns about the economy, the ongoing US-China trade dispute and uncertainty over Brexit.

Dublin

The Iseq index closed out the week with a 1.25 per cent climb on Friday, helped by index heavyweights. Building materials group CRH added to recent gains, rising 1.6 per cent to €31.28. Ryanair also climbed, recovering a portion of its slide in the previous session to finish 0.8 per cent higher at €10.26.

Paper and packaging group Smurfit Kappa added 2 per cent to €27.42 on a good day for its sector, while insulation-maker Kingspan advanced 4.1 per cent to €44.32.

It was a positive session for financial stocks, with Bank of Ireland surging 5.5 per cent to €3.58, on a day when it announced it was extending its partnership with the post office in the UK. AIB also rose 3.5 per cent to €2.64, while Permanent TSB was 2.2 per cent higher at €10.26.

Sterling nears 10-day lows as Brexit impasse prevails

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European shares finish at two-week low but shave losses late on

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Banks push Iseq higher even amid heightened Brexit uncertainty

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Providence Resources believes exploration licences will progress

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However, food group Kerry was 0.8 per cent lower at €106.30, drinks group C&C declined 0.5 per cent to €4.16 and Cairn Homes fell 0.7 per cent to just below €1.14. Aryzta also continued its decline, finding a fresh record low at 72 cent, down 4.6 per cent.

London

London’s blue-chip stocks jumped on Friday to its highest in almost two months, with the biggest support coming from its globally-exposed components, after the Bank of England’s first clear signal that it was looking at a rate cut saw sterling weaken.

The FTSE 100 index closed more than 1 per cent higher, ending the week on a surprisingly positive note despite growing political tensions.

Among stock moves, Britain's second-largest homebuilder Persimmon soared 5.2 per cent after analysts at brokerage Jefferies said Brexit risks were overplayed in the sector, prompting an upgrade on the stock.

Imperial Brands continued to falter a day after it said its sales would be affected by the US crackdown on flavoured e-cigarettes and tighter regulation on vaping products. After tanking on Thursday by more than 10 per cent, the company slid a further 1.3 per cent.

Europe

The Stoxx 600 index rose 0.5 per cent as basic resources stocks advanced. In Germany, the Dax climbed 0.75 per cent, while the French Cac 40 finished almost 0.4 per cent higher and the Spanish Ibex 35 posted a 0.6 per cent gain.

Osram was among the biggest gainers on the pan-region index after, up 5.4 per cent, after Austrian sensor maker AMS raised its takeover offer for the German lighting group to €4.5 billion.

Shares of semiconductor companies Infineon, AMS and ASM International all came under pressure after Micron forecast first-quarter profit below Wall Street targets.

Defensive sectors – healthcare, real-estate and utilities – were the only decliners among major European sectors on the day. But all three ended with gains over the week as profit warnings from European companies this week have fuelled fears of recession.

US

The S&P and the Nasdaq fell after news that the Trump administration was considering delisting Chinese companies from US stock exchanges and limit US investments into China.

US-listed shares of Alibaba Group Holding, Baidu and JD.com slipped between 1.2 per cent and 3.6 per cent on the news.

Micron Technology tumbled 9.2 per cent and pulled the Philadelphia semiconductor index down 0.9 per cent.

The three main indexes are set to end a volatile week slightly lower after conflicting headlines about US-China trade and as US Democrats launched an impeachment investigation on President Donald Trump.

Shares of Wells Fargo & Co rose 4.4 per cent and were among the top gainers on the S&P 500 after the lender named banking veteran Charles Scharf as chief executive. – Additional reporting: Reuters