European shares fall but Irish market up

European shares fell and US stocks fluctuated as weak American data moved the euro higher, but the Irish market managed a tiny gain as the London market advanced for the first time this week.

DUBLIN

The Iseq finished 14.18 points or 0.23 per cent higher at 6,096.84, with financials gaining 1.34 per cent while general stocks just about advanced by 0.09 per cent.

After positive assessment this week from rating agencies Moody's and DBRS, Permanent TSB received a further boost when Standard & Poor's removed the institution from its "credit watch" list. The stock gained 1.52 per cent to finish at €4.68. Bank of Ireland put on 1.44 per cent to finish at 35.2 cent.

Aryzta gained 2.96 per cent to finish at €60.15. Glanbia, which updated the market on Tuesday, dropped 0.42 per cent to €16.80.

It was a positive day for real estate investment trusts. Green Reit added 2.77 per cent to close at €1.595. Hibernia Reit reached €1.24, 2.06 per cent higher.

CRH eased 1.23 per cent or 31 cent to close at €24.99. On the back of positive sectoral news, Smurfit Kappa gained 1.75 per cent or 47 cent to finish at €27.38.

With the fate of Aer Lingus still uncertain, the shares lost 0.79 per cent to close at €2.38.

LONDON

Britain’s top share index rose after the Bank of England said it would only start to raise interest rates in about a year’s time, confirming market expectations.

The BoE cut growth forecasts for UK economic growth over the next three years, which hit sterling but gave equities a lift, with investors betting on the low-interest rate environment that has sent the FTSE 100 index to record highs this year.

“It has really pushed back the prospect for interest rate increases,” said Brewin Dolphin head of research Guy Foster.

The FTSE 100 increased 0.2 per cent to 6,949.63 at the close in London, buoyed after a report showed the nation’s unemployment fell to its lowest since 2008 in the first quarter and pay growth rebounded.

Mondi rose 8.7 per cent for its biggest jump since 2009 after Europe's largest producer of kraft paper and industrial bags said first-quarter earnings jumped. Barratt Developments rose to an almost eight-year high after saying it expected to reach its housing targets earlier than previously forecast.

EUROPE

European shares fell as weak US data pushed the euro higher, hitting markets in which export-led firms have benefited from a drop in the single currency.

The pan-European FTSEurofirst 300 index ended down 0.3 per cent at 1,570.13 points, while the euro zone’s blue-chip Euro Stoxx 50 index fell 0.6 per cent, easing gains made earlier in the day.

Germany's Dax, which reached record highs last month as the weakness in the euro had boosted exporters such as carmaker BMW, fell 1.1 per cent to 11,351.46 points. The FTSEurofirst 300 remains up by around 15 per cent since the start of 2015 while the Dax is up 16 per cent.

WALL STREET

US stocks fluctuated as corporate deal activity was offset by concern a fixed-income selloff is not done, and weaker-than-forecast retail sales disappointed investors who were expecting a rebound from a winter slowdown.

Owens-Illinois climbed 10 per cent after a deal to buy the food-and-beverage glass business of Vitro SAB. Williams Cos rallied 5.4 per cent as it plans to buy the 40 per cent of Williams Partners it doesn't already own.

Danaher advanced and Pall added 4.5 per cent after their $13.8 billion deal. Retailers' shares slipped after the sales data, led lower by Macy's.

The Standard & Poor’s 500 Index fell 0.64 per cent to 2,098.48 at end of trading in New York.The Dow Jones Industrial Average declined 7.74 points, or 0.04 per cent, to 18,060.49.