Markets on the slide again as oil price drifts down

Stocks across the globe fell the most in three weeks yesterday, tracking oil prices lower, while the first contraction in the US services sector since October 2013 weighed further on financial stocks.

A move towards safety assets lifted top-rated government bond prices, gold and the yen.

Crude futures prices dropped after Saudi Arabia ruled out production cuts and an industry report said US crude stockpiles hit record levels, underlining the supply glut.

DUBLIN

The Iseq index of shares closed down 1 per cent at 6,045, which was better than most European markets.

Permanent TSB

suffered most from a global sell-off in financial stocks, dropping nearly 8 per cent to €2.45.

Bank of Ireland fared better, losing 1.2 per cent of its value to close at €0.239, albeit this followed a near 7 per cent collapse in the previous session.

Food group Glanbia enjoyed a 0.7 per cent bounce, ending the day at €18.44 after publishing positive set of full-year results, which saw group revenues jump 4.1 per cent in 2015.

Building materials group CRH declined in line with rivals, falling roughly 3 per cent, to €22.42. Similarly Smurfit Kappa fell 1.3 per cent, to €20.90.

Paddy Power performed better than most in the sector, dropping only 0.5 per cent to €129.65. Ryanair closed down 0.3 per cent at €13.82.

LONDON Britain’s top share index fell

as mining stocks and FTSE heavyweight Standard Chartered came under pressure for a second straight session. The FTSE 100 ended down 1.6 per cent after a strong rally last week that was the biggest weekly gain for the index this year.

Standard Chartered was among the leading losers after brokers downgraded their price targets on the Asia-exposed bank, which posted its first loss in 26 years on Tuesday. It slumped 4.4 per cent after price target downgrades from Deutsche, Bank of America/Merrill Lynch and Nomura, taking total losses since it reported the results to more than 10 per cent.

Mining stocks BHP Billiton, Glencore and Anglo American down 8.4-10.1 per cent. Mining was the biggest sectoral loser, having hit 12-year lows in January. BHP slumped after results in the previous session when it slashed its dividend.

EUROPE European stocks declined for a second day as sliding oil prices stoked investor concern about global growth. European carmakers and banks, the weakest groups this year, were also among the worst performers

.

Denmark's Sydbank fell 8.4 per cent after reporting profit that missed estimates.

Wirecard plunged the most in the Stoxx 600, sinking 22 per cent. An anonymous short seller published a report accusing management and board members at the German payments processor of money-laundering and of facilitating the evasion of US restrictions on internet gambling. The company called the allegations "slanderous."

Hugo Boss lost 8.4 per cent for its biggest two-day slump since 1999 as Société Générale cut its rating on the German clothier to sell from hold, following yesterday's profit warning. Fresenius rose 3.4 per cent after Europe's largest healthcare provider forecast that profit and sales will increase this year.

NEW YORK

US stocks fell more than 1 per cent, dragged down by financial stocks, a day after JPMorgan signalled a rough first quarter and oil prices continued to fall. All 10 major S&P sectors were lower, led by the 1.8 per cent decline in financials, already the worst performing sector this year.

JP Morgan was down 2.3 per cent after the bank forecast double-digit declines in investment banking revenue and raised its provisions for energy loan losses. Boeing was down 3.2 per cent after Goldman Sachs cut its price target on the stock.

Ford was down 5.4 per cent and General Motors was off 4.6 per cent after Credit Suisse said it was a "poor time" to own motor stocks. – Additional reporting: Reuters/Bloomberg