LAST WEEK’S equity rally fizzled out yesterday as weak Chinese data offset US QE3 hopes, resulting in a quiet day’s trading across European markets.
Disappointing import figures from China sparked concerns that the world’s second largest economy may be continuing to slow, and sent some jitters through stock markets.
National benchmark indexes moved lower in 11 of the 18 western-European markets, although losses in the major bourses were minimal.
DUBLIN
THE ISEQ just about succeeded in remaining in positive territory yesterday, adding 1.39 points to 3,263.29.
“Stocks that have performed well recently held up okay,” a Dublin trader said.
The index’s largest constituent, CRH, delivered the strongest performance, gaining more than 2 per cent, or 30 cent, to close at €15.10.
Drinks manufacturer CC lost the upwards momentum it enjoyed last week, slipping back by five cent to €3.69.
Agri-services group Origin Enterprises was better on the day. It finished almost 4 per cent, or 15 cent, higher at €4.15.
Paddy Power also closed ahead, rising 45 cent to €57.85.
Otherwise it was very quiet on the Irish market. A Dublin broker noted that volumes are still thin, as many investors only returned from holidays yesterday.
LONDON
BRITISH STOCKS halted a two-day rally as reports showed that China’s imports slid and a gauge of confidence among Britain’s executives fell to a record low.
Kazakhmys led metal producers higher as Chinese import data fuelled speculation the country will opt for further economic stimulus.
The stock gained 4.4 per cent to 686.5 pence as copper climbed to its highest price in almost four months in London.
Xstrata rose 1.2 per cent as Glencore International said its revised takeover offer for the Swiss mining company is final.
Associated British Foods slid 2 per cent, leading so-called defensive companies lower.
Antofagasta, which mines for copper in Chile, rose 1.9 per cent to 1,249 pence and Rio Tinto added 1.6 per cent to 3,069 pence.
The FTSE 100 Index slid 1.6 points, or less than 0.1 per cent, to 5,793.2 at the close in London, after retreating as much as 0.3 per cent and advancing as much as 0.2 per cent.
The gauge climbed 1.5 per cent last week after European Central Bank policy makers approved an unlimited bond-purchase program.
The broader FTSE All-Share Index was also little changed.
“A lot of those hopes for central-bank intervention are going to help sentiment, but I think there will be a lot of volatility near term,” Yogi Dewan, chief executive officer at Hassium Asset Management, said.
EUROPE
EUROPEAN STOCKS fell as China’s imports unexpectedly dropped, and Greece struggled to qualify for aid payments.
Germany’s DAX slipped less than 0.1 per cent. France’s CAC 40 lost 0.4 per cent. The Stoxx 600 declined 0.2 per cent to 271.69 at the close.
The gauge surged the most since the beginning of June last week after ECB president Mario Draghi said policy makers approved a bond-buying plan to lower borrowing costs in the euro area.
Food and beverage stocks contributed the most to the benchmark Stoxx Europe 600 Index’s retreat, as Unilever and Anheuser-Busch InBev each lost more than 1.5 per cent.
Nestlé, the world’s largest food company, declined 0.7 per cent to 58.85 Swiss francs.
NEW YORK
US STOCKS were little changed in early trade yesterday, after the Standard Poor’s 500 Index rose to the highest level since 2008, as concern over Greece’s debt crisis overshadowed speculation central banks will take action to spur the economy.
Intel lost 3.1 per cent after Morgan Stanley cut its earnings forecasts and Nomura Holdings said estimates for the largest chipmaker’s profit next year may fall further.
Alpha Natural Resources rose 3.5 per cent as commodity producers gained.
Cisco Systems slumped 1.5 per cent to $19.27, while Boeing sank 1.9 per cent to $71.50.
Verizon Communications added 1 per cent to $44.16, while Vulcan Materials also rose, advancing 3.9 per cent to $41.94.
Alcoa, the largest US aluminium producer, jumped 1.4 per cent to $9.23.
International Paper dropped 2.9 per cent to $35.25, after Deutsche Bank’s Mark Wilde cut his recommendation on the world’s largest paper and pulp producer and other containerboard makers, saying price increases are “not a done deal”. – (Additional reporting - Bloomberg)
