Global markets close flat to down

Markets closed flat to down as the World Bank predicted that the economy of the euro area will contract in 2013, while Eurogroup chief an-Claude Juncker said the strength of the single currency threatened the region’s growth.

DUBLIN

It was “steady as she goes” on the Dublin market yesterday; flat for much of the day but finishing stronger, up by 0.2 per cent at 3,460.85.

Index heavy-weight CRH was up marginally on the day, adding 5 cent, or 0.3 per cent, to finish up at €14.73.

Smurfit was “weaker during the day” according to brokers, but finished a bit stronger, adding 19 cent, or 2 per cent, to close up at €9.95.

After a “stellar” start to the year, Bank of Ireland bounced off the 14 cent level a couple of times, before closing at €0.14.

Glanbia moved on again, “a great little performer over last six months”, holding on to its gains as it advanced by 11 cent, or 1.3 per cent, to finish the day up at €8.21.

Ryanair held up very well yesterday, going as high as €5.38 before closing up by 0.7 cent, or 1.3 per cent, at €5.34.

Kingspan “was drifting a little bit”, as it gave up 13 cent, or 1.5 per cent, to close down at €8.50.

Similarly, drinks group CC updated the market with an improved third-quarter performance, but it closed a little bit weaker, down by 8 cent, or 1.7 per cent at €4.47.

LONDON

UK stocks fell on the back of economic concerns, with the FTSE 100 declining by 13.33 points, or 0.2 per cent, to close at 6,103.98, paring an earlier slide of as much as 0.7 per cent.

“Hopefully, the rehabilitation in Europe is sustained, albeit you are already beginning to price a lot of the recovery in,” said Derek Mitchell, a UK equity fund manager at Royal London Asset Management. “The market has come too far, too fast, valuations are very stretched. Last year was all about a re-rating, but we need to see earnings growth this year, and the US is a good indication of what we can expect later in the UK market”.

Tesco slid by 0.7 per cent to 347.1 pence as the UK’s largest retailer withdrew two types of beef burger after the Food Safety Authority of Ireland found that some contained horse DNA.

Vodafone retreated by 1.8 per cent to 160 pence as Deutsche Bank lowered its recommendation on the world’s second-largest mobile-phone operator to hold from buy.

The brokerage said Vodafone’s growth rate will probably deteriorate this year and its free cash flow may decline through 2014.

EUROPE

European stocks were little changed as concern that debt-ceiling talks will harm the US economy and a report showing weaker-than-forecast German growth offset Spain’s better-than-targeted sale of debt.

France’s CAC 40 lost 0.3 per cent and Germany’s DAX sank by 0.7 per cent.

Air Liquide, a maker of industrial gases, fell 1 per cent to €92.15 after Bank of America’s Merrill Lynch unit cut its recommendation to underperform from neutral, saying that the “risk/reward” at the shares’ current levels isn’t attractive. HandM jumped 3.6 per cent to 228.20 kronor. Europe’s second- largest clothing retailer reported an increase in sales that beat analysts’ estimates.

US

US stocks held near the unchanged mark as concerns about global economic growth and a drop in Boeing shares offset strong bank results and gains in technology stocks.

The Nasdaq moved higher on a bounce in Apple shares, which were up by 3.6 per cent at $503.31 after losses in three straight sessions. Morgan Stanley stamped the tech giant as a “best idea,” citing overblown concerns about iPhone shipments.

Goldman Sachs shares hit their highest level since May 31st, 2011, as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses. ( Additional reporting: Bloomberg/Reuters)