European stocks run out of steam midway through session

European stocks were little changed at the close of markets as upward momentum in the middle of the session evaporated later in the afternoon.

Equities ran out of steam after European Central Bank president Mario Draghi said the bank needed time to consider whether risks to the economic outlook warranted a step-up in stimulus measures.

Shares had been boosted earlier in the day after a report showed the euro zone economy probably maintained its 0.4 per cent rate of expansion in the third quarter and will continue to grow.

While markets finished fractionally up and avoided a repeat of Tuesday’s sharp decline, they continue to be “jittery and patchy”, one Dublin-based trader said.

DUBLIN

The Iseq finished up 0.5 per cent.

Ryanair

, one of its biggest stocks, closed up 1.9 per cent at €13.79 on a day when airlines including

IAG

and

Easyjet

climbed.

Origin Enterprises published full-year results in line with expectations but said it anticipated lower demand for some of its agri-services in 2016. The stock was trading 9 per cent lower at one stage, but closed down 6.5 per cent at €7.05. There was a good volume of trading in Bank of Ireland, which closed down 0.3 per cent at 33 cent, while food group Glanbia was also well-traded, finishing up fractionally at €16.82, and Independent News & Media closed up 0.6 per cent at €1.70.

Building materials group CRH was also a climber, adding 0.4 per cent to finish at €25.03. There was some profit-taking, however, in market darling Paddy Power, which lost 1 per cent. But it still closed comfortably above €100 at €102.75.

LONDON

The FTSE 100 index closed up 1.6 per cent, recovering from its slump in Tuesday’s session as rising oil prices led to gains by energy stocks.

Oil prices stabilised as a decline in US inventories offset weak economic data from China, with BP and Royal Dutch Shell among the energy groups that advanced.

IAG rose 4.8 per cent, leading the index higher, after Morgan Stanley lifted its forecasts for IAG, saying it was its top pick in the sector while analysts suggested it was one of the main beneficiaries of lower fuel hedging costs. Easyjet finished up 3.5 per cent.

BHP Billiton and Glencore climbed at least 2 per cent, pushing a measure of miners higher as commodity prices stabilised.

EUROPE

Carmakers rebounded after their worst two-day drop since 2008.

Volkswagen

added 5.2 per cent after closing at its lowest price since 2011 on Tuesday. Chief executive Martin Winterkorn stepped down over the company’s admission it cheated on US emissions tests, having said he wouldn’t quit a day earlier.

Swedish healthcare company Elekta jumped 5.1 per cent after a report said it could exceed its target for 450 million kronor (€47.7 million) in cost reductions in the next two years.

Netherlands-headquartered PostNL rallied 6.8 per cent after analysts at Bank of America recommended buying the stock.

US

Wall Street fell in volatile trading as weak Chinese and US factory data hit material and industrial stocks. Data showed US manufacturing growth stayed at a two-year low in September, while Chinese factory activity shrank to a six-and-a-half-year low in the month.

Selling resumed in raw-material and industrial companies, two of the worst hit sectors during the previous day’s sell-off.

Chevron dropped 1.5 per cent as oil erased early gains. Most auto-related shares extended declines amid the Volkswagen diesel-emissions cheating scandal. Ford and General Motors both declined more than 1.1 per cent.

Brent crude oil prices inched toward $50 per barrel after data showed a decline in US stockpiles last week. – (Additional reporting: Bloomberg / Reuters)