European shares wipe gains over trade concerns
Markets report: Iseq slipped 0.84 per cent in line with broader slump
US secretary of commerce Wilbur Ross said that planned tariffs on Chinese imports will be imposed on December 15th unless there is some real reason to postpone, such as substantive progress in talks. Photograph: Justin Lane/EPA
Dublin’s main share index slipped 0.84 per cent on Tuesday on the back of the Trump prompted trade concerns.
Ryanair outperformed its European airline rivals after releasing traffic statistics in the morning. The airline said traffic grew 4 per cent in November with load factor coming in at 96 per cent. Ryanair dipped 0.91 per cent to €13.60 but Lufthansa, EasyJet and Air France-KLM posted more significant dips.
Bookmakers across the board were weak on the day with UK company William Hill falling significantly. Paddy Power-owner Flutter Entertainment dropped a more modest 0.96 per cent to €103 on its Dublin listing.
On the other side of the board, Kingspan was amongst the stand out performers. The insulation maker posted a 1.7 per cent rise on the day, helping it close at €50.15, above the all important €50 level.
Origin Enterprises was also in the green, regaining some ground after falling almost 10 per cent in the past week. The agri-business closed at €3.85, up 3.92 per cent on decent volume.
London’s FTSE, packed with trade-sensitive mining and energy stocks, lost 1.8 per cent, the most in the region, as material shares lost 1.6 per cent.
Diversified miner Glencore was among steepest fallers on the main board, tumbling 4 per cent as investors were unimpressed by an update on the company’s priorities and expected output.
The FTSE 100 is headed for its worst monthly performance since August despite being just days into the final month of the year.
In other moves, Cineworld lost 4 per cent after the cinema chain warned on its annual trading performance.
The World Trade Organization’s rejection of EU claims that it did not provide subsidies to Airbus prompted the United States to say it could raise retaliatory tariffs on a wider range of European goods. Airbus shares fell 4.4 per cent.
Reversing session gains, the pan-European stocks index closed down 0.6 per cent, after logging its worst selloff since October 2nd on Monday.
German shares, meanwhile, ended up 0.2 per cent thanks to rallies in software firm SAP and MTU Aero Engines which rose after a BoFA Merrill Lynch upgrade to “buy”.
Italy’s blue-chip index finished marginally higher, supported by gains in Ferrari after a Goldman Sachs target price hike and utility Enel after it made a bid for Renvico wind farm portfolio in Italy and France.
Among other bright spots, telecom companies Ericsson and Nokia rose on a media report that said Washington is considering financial aid to countries that would source telecoms equipment from firms other than China’s Huawei.
Wall Street fell more than 1 per cent and the benchmark S&P 500 hit a near one-month low on Tuesday.
Nine of the 11 major S&P 500 sectors were trading lower, with tech heavyweights Apple and Microsoft weighing the most.
The S&P 500 is still up about 23 per cent this year, helped by interest rate cuts from the Federal Reserve.
– Additional reporting: Reuters