Global stock markets edge down after weak US jobs data

In Dublin Smurfit Kappa is buoyed by better-than-expected trading update

Pat McCann (left), chief executive, and John Hennessy, non-executive chairman of Dalata: the hotel group  rose 1.6 per cent to €4.35 ahead of announcing the purchase of a property in Cork, where it plans to build a 121-room hotel.  Photograph: Eric Luke / The Irish Times

Pat McCann (left), chief executive, and John Hennessy, non-executive chairman of Dalata: the hotel group rose 1.6 per cent to €4.35 ahead of announcing the purchase of a property in Cork, where it plans to build a 121-room hotel. Photograph: Eric Luke / The Irish Times

 

Stock markets worldwide dipped yesterday after April US employment data showed the fewest jobs added in seven months, adding to concerns over economic growth, while short-dated Treasury yields sank.

Non-farm payrolls increased by 160,000 jobs last month, far below the 202,000 economists polled by Reuters had forecast on average.

The number cast doubts on whether the Federal Reserve will raise interest rates before the end of the year.

US interest rates futures suggested traders see a 7 per cent chance of the Fed raising rates at its June 14th-15th meeting, down from 14 per cent on Thursday, data showed. US and European shares weakened after the jobs data.

DUBLIN

Smurfit KappaTony Smurfit

Financial stocks fared less well with both Bank of Ireland and Permanent TSB down 1.2 per cent and 5 per cent respectively at €0.23 and €2.45.

Ryanair traded down 1.5 per cent at €12.76 following weaker numbers from rival EasyJet and forecasts of weaker yields over the summer.

Building materials group CRH was up nearly 1 per cent at €24.86 following positive data about US housebuilding.

Hotel group Dalata rose 1.6 per cent to €4.35 ahead of announcing the purchase of a property in Cork, where it plans to build a 121-room hotel.

LONDON

InterContinental Hotels

IHG said overall room revenue growth in its first quarter stood at 1.5 per cent, although it was dragged back by weak oil markets, the earlier timing of Easter and political uncertainty in some Middle East markets.

FTSE 250 insurer Hastings said that revenues rose 22 per cent to £132.7 million in the first quarter as the firm increased its market share.

The number of customers on its books grew 17 per cent to 2.1 million and Hastings’ share of the private car insurance market also increased to 6 per cent from 5.3 per cent. Shares lifted 0.8p to 176.8p.

EUROPE

ArcelorMittal fell 1.2 per cent after the world’s largest steelmaker kept its guidance unchanged.

Among stocks gaining ground was Monte dei Paschi di Siena , which rose 2.4 per cent after the Italian bank reported better-than-expected first-quarter results.

NEW YORK

Early on the Dow Jones industrial average was down 27.32 points, or 0.15 per cent, at 17,633.39, the S&P 500 was down 7.35 points, or 0.36 per cent, at 2,043.28 and the Nasdaq Composite was down 27.03 points, or 0.57 per cent, at 4,690.06.

Seven of the 10 major S&P 500 sectors were lower, with the health index’s 1.33 per cent fall leading the decliners.

Ireland-domiciled Endo International slumped 40 per cent to $15.95 after the drugmaker slashed its 2016 revenue and profit forecasts.

The stock dragged down other specialty drugmakers, such as Horizon Pharma, Mallinckrodt and Valeant.

– (Reuters)