Global trade worries continues to dampen mood of European traders
Markets report: London’s FTSE 100 closes sharply lower, its sixth session in the red
US stocks rose on Tuesday, helped by technology shares, as China stepped in to stabilise the yuan
US stocks rose on Tuesday, helped by technology shares, as China stepped in to stabilise the yuan.
European shares finished lower, weighed down by trade worries as support from upbeat German data and China’s currency efforts proved temporary.
London’s FTSE 100 closed sharply lower, its sixth straight session in the red, bringing its losses to more than 5 per cent since US president Donald Trump announced more tariffs on Chinese exports.
The Iseq index fell by almost 0.5 per cent on wafer-thin trading volumes.
Exploration company Providence Resources fell 1.25 per cent to below 8 cent per share, as it continued to experience pressure following its failure so far to consummate a funding deal with a Chinese company for its Barryroe oil prospect. The company announced a raft of cost cuts and board changes, as it pushed out a deadline to receive the cash form its prospective partner.
Smurfit Kappa Group fell 1.5 per cent to €26.06 per share, after it was fined €124 million by Italian authorities, who found that 50 paper and packaging groups, including the Irish group, had engaged in anti-competitive practices.
Glanbia, whose share price often suffers when concerns around US-China trade spike, fell almost 4 per cent to €11.19.
Cairn Homes, meanwhile, was one of the few Irish shares that turned in a solid performance, rising more than 1.5 per cent to €1.04.
London’s FTSE 100 index, packed with miners and commodity-focused firms who are heavily exposed to Chinese demand, fell 0.7 per cent to a two-month low. Engine maker Rolls-Royce slumped 7 per cent, its biggest one-day fall since 2015, after it raised cost estimates to tackle problems relating to its Trent 1000 engines, which have caused airlines to ground Boeing 787s while repairs are carried out.
Engineering firm Meggitt advanced 3 per cent after it raised its annual organic revenue growth forecast.
Fashion retailer Boohoo added 4.1 per cent after sealing a deal to buy the online businesses of fashion chains Karen Millen and Coast.
Fertilizer maker Sirius Minerals, however, slumped nearly 29 per cent to a more than four-year low after it suspended a planned $500 million bond sale central to the funding of its Polyhalite mining project in northeast England.
The pan-European stocks benchmark STOXX 600 index closed 0.5 per cent lower, extending a trade driven rout to a third session.
Germany’s DAX reversed a 1 per cent jump to close down 0.8 per cent. Metro was the worst performer on the main index, down 8.1 per cent after Czech businessman Daniel Kretinsky’s investment vehicle confirmed it would not raise its €5.8 billion bid for the German retailer.
Vivendi shares jumped on news that it may sell a 10 per cent stake in Universal Music Group to Chinese tech group Tencent, while industrial group Rotork topped STOXX 600 on posting strong first-half results.
By mid-afternoon, the technology sector, which includes companies that have a big exposure to China and were at the heart of Monday’s sell-off, rose 1.05 per cent, the most among major S&P sectors.
Apple gained 1 per cent after three days of heavy losses, while Philadelphia Semiconductor index climbed 0.91 per cent.
Among other stocks, videogame publisher Take-Two Interactive Software jumped 8.5 per cent after raising its full-year revenue forecast.
The materials sector dropped 0.78 per cent, weighed by a more than 10 per cent drop in scent and flavour maker International Flavors & Fragrances and fertilizer company Mosaic after the two companies cut full-year earnings forecasts. Payments processor Mastercard gained 2.1 per cent after it said it would buy a majority of the corporate services businesses of Scandinavian payments group Nets for about $3.19 billion.
Walt Disney Co was up 0.7 per cent ahead of its results after market close.
– Additional reporting: Reuters