US jobs report weighs on global stock exchanges

The latest US jobs report, which kept alive the prospect of an interest-rate increase this month by the Federal Reserve, weighed heavily on global stock exchanges. DUBLIN The mood was no different in the Irish market, where the Iseq index gave up 1.16 per cent on the day to close the week at 6,314.57.

The index, which reached a 12-month high of 6,715.95 one month ago, remains well ahead of its 12-month low of 4,275.26 last October.

“It’s bungee-jumping all week. Everything is very much related to what’s happening globally,” said a Dublin market participant. “Trading was relatively light across the board.”

With the exception of insurer FBD, the trader said the market was encouraged by a very good reporting season for listed Irish groups.

Having become the first Irish stock to breach the €100 barrier on Thursday, Paddy Power gave up 1.6 per cent to finish out at €98.20. The Dublin-based bookmaker unveiled a deal this week to merge with London-based rival Betfair.

It was a similar day for Kingspan, which also reached an all-time high during the week. The stock dropped 0.66 per cent to finish out at €21.94½.

The trader cited heavy volumes of Bank of Ireland shares changing hands. Its stock eased 1.14 per cent to close at 34.8 cent.

Ryanair was down 0.54 per cent at €12.81 on the day but investors believe heavy load factors at Aer Lingus and positive market guidance from Lufthansa and EasyJet augur well for the stock. LONDON Britain's top share index fell sharply on the US jobs data. The FTSE 100 was down 151.18 points, or 2.4 per cent, at 6,042.92 at the close.

It gave away all of Thursday’s 1.8 per cent rise, leaving the index down 3.3 per cent for the week.

Miners were the heaviest fallers on the FTSE 100, with the FTSE 350 mining index down 5.3 per cent.

Anglo American, Glencore and Antofagasta were down 7.8 per cent, 6 per cent and 5.3 per cent respectively. EUROPE European shares ended the week lower after the US data triggered selling pressure as investors try to gauge the timing of the next rate hike.

“Sentiment is quite nervous . . . I think more and more investors blame central banks for not acting in the current environment to bring stabilisation,” said Ingo Speich, portfolio manager at Union Investment in Frankfurt.

The pan-European FTSEurofirst 300 index closed down 2.5 per cent at 1,392.63 points after rising 2.4 per cent the previous day when the European Central Bank delivered a dovish message from its first meeting after weeks of market turmoil.

Energy and mining shares were among the worst performing sectors, falling 4 and 5 per cent respectively.

Germany's benchmark DAX share index fell 2.7 per cent after data showed industrial orders had fallen more than expected in July on lower foreign demand. NEW YORK Wall Street opened lower as investors assessed the August jobs report. In early New York trading the Dow Jones industrial average was down 197.62 points, or 1.21 per cent, at 16,177.14.

The S&P 500 was down 20.95 points, or 1.07 per cent, at 1,930.18 and the Nasdaq Composite was down 38.70 points, or 0.82 per cent, at 4,694.80.

Caterpillar’s shares were down 2 per cent at 72.93 after Baird downgraded the stock to “neutral”.

Netflix was down 1.9 per cent at $98. The stock has fallen for the past five days. Additional reporting: Agencies