Dow Jones: 12,675.75 (-0.26%) Nasdaq: 2,786.64 (+0.09%) SP 500: 1,314.63 (-0.10%)STOCK MARKETS around the globe fell yesterday as talks on Greek debt restructuring reached an impasse, and the IMF warned that the global economy was in the "danger zone."
European stocks declined from a five-month high as the region’s finance ministers failed to agree on a debt-swap deal for Greece and called for a greater contribution from bondholders, also dragging US stocks down.
The euro recovered from a 0.5 per cent decline to trade little changed at $1.3003, near its highest level of the year.
DUBLIN
Trading in Dublin mapped the global trend, with the Iseq index endding the session 22 points lower. Traders in Dublin noted there was an element of profit-taking at play, following the bullish run since the new year.
Main movers yesterday included construction stocks, with some of the big names losing ground after a strong performance in recent weeks.
CRH, which now has its primary listing in London, lost 36 cents or 2.25 per cent to close at €15.64. Grafton shed a half a per cent to €2.64, while insulation maker Kingspan retreated by 0.8 per cent, to finish at €6.98.
Packaging group Smurfit Kappa added a half a per cent to finish at €5.88, although on light volume, after peer company Packaging Corporation reported quarter four figures ahead of expectations.
DCC rebounded somewhat after its profit warning last week, advancing 1.5 per cent to €18.43.
Farm enterprise company Continental Farmers, which listed on the Enterprise Securities Market last year and in which Origin Enterprises has a 24 per cent interest, announced it was entering a joint venture with EDF Man for the long-term production and supply of sugar beet to EDF Man’s sugar refinery in Ukraine.
Continental remained at €0.28 yesterday.
LONDON
UK stocks dropped from their highest level since July. Barclays and Ashmore Group led a retreat in banks and asset managers, each losing more than 1 per cent. Chemring Group plunged 14 per cent after reporting earnings.
The FTSE 100 Index slid 0.5 per cent, falling from its highest level since July 29th. The gauge has gained 3.2 per cent so far this year, buoyed by better-than-estimated US data and falling bond yields in the euro area. The FTSE- All Share Index fell 0.6 per cent.
Weir Group shares advanced 2.3 per cent. Barclays declined 1.9 per cent to 218.5 pence as a gauge of UK bank shares snapped its longest winning streak since 2005.
Lloyds Banking slid 2.8 per cent to 31.68p and Royal Bank of Scotland retreated 3.9 per cent to 27.05p. Ashmore slipped 2.4 per cent to 355p, as RBS downgraded the emerging-markets focused fund manager to “hold” from “buy”.
Chemring tumbled 14 per cent to 386.5p. The maker of missile-avoidance systems for fighter jets reported full-year pretax profit of £90.8 million, falling short of the average analyst estimate of £128.9 million.
Carphone Warehouse rallied 7.7 per cent to 338p after Europe’s largest mobile-phone retailer reiterated its full-year earnings guidance and reported growth in post-pay markets.
EUROPE
The Stoxx Europe 600 Index fell 0.4 per cent to 256.04, although the gauge has still risen 4.7 per cent so far this year amid reports which suggested some strengthening of the global economy.
National benchmark indexes fell in 14 of the 18 western European markets. France’s CAC 40 lost 0.5 per cent, as did the FTSE 100. Germany’s DAX retreated 0.4 per cent.
Banks led the losses in Europe.Societe Generale and Credit Agricole retreated at least 4.1 per cent after Standard and Poor’s cut the banks’ credit ratings. Siemens, Europe’s largest engineering company, dropped 1.2 per cent after saying that achieving its goals for the year has become harder.
Petroplus Holdings plunged to its lowest price ever after planning to file for insolvency. NV slid 5.8 per cent to €5.30. Europe’s largest semi-conductor maker predicted that first-quarter revenue would fall as much as 10 per cent from the previous three months because of lower sales at its wireless business.
US
Travelers led losses in the Dow yesterday after fourth-quarter profit fell 31 per cent on lower investment income and a smaller benefit reserve.
McDonald’s slid as the restaurant chain said foreign-currency fluctuations would cut 2012 profit.
Verizon retreated after posting a quarterly loss. Wells Fargo and Bank of New York Mellon paced losses among the larget US banks.
Zions Bancorporation had the biggest loss in the S&P 500 as the Salt Lake City-based bank was cut to “hold” from “buy” at Stifel Nicolaus after reporting earnings-per-share that missed the average analyst estimate by 23 per cent.
Apple, which in October reported lower profit than analysts estimated for the first time since at least 2005, is among eight US companies which were scheduled to report quarterly results after markets closed yesterday. – Additional reporting: Bloomberg
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