Iseq closes down almost 1% as Kerry and Ryanair lose ground
Markets report: Renault drags European shares lower as it cuts full-year forecast
Kerry ended 3.2 per cent lower at €104.00. Glanbia also joined in the decline, ending 2.6 per cent lower at €10.95.
French carmaker Renault dragged European shares lower on Friday, while the sharpest contraction in the Chinese economy in nearly three decades exacerbated worries about slowing global growth.
The Iseq closed down almost 1 per cent, underperforming the major European indices, as key index constituents Kerry and Ryanair lost ground. On a weak day for food stocks across Europe after poor results from Danone, Irish food group Kerry ended 3.2 per cent lower at €104.00. Glanbia also joined in the decline, ending 2.6 per cent lower at €10.95.
Ryanair slid 1.3 per cent to €11.90, while Bank of Ireland closed down almost 2.3 per cent at just under €4.34. AIB managed to nudge up 0.1 per cent to €3.14, while Dalata Hotel Group had another good day, edging up 0.9 per cent to €5.47.
Paper and packaging group Smurfit Kappa added 0.8 per cent to finish at €28.66.
London-listed stocks ended a mixed week on a cautious note ahead of Saturday’s crucial parliamentary vote on Brexit.
InterContinental Hotels and oil stocks weighed on the FTSE 100, which closed 0.4 per cent lower. InterContinental shares fell 4.6 per cent after the Holiday Inn owner said lower business bookings in China and protests in Hong Kong had caused a drop in revenue.
Shares in consumer goods giants Unilever and Diageo lost about 1 per cent each after downbeat earnings and forecast from their respective French peers Danone and Remy Cointreau and as sterling held steady.
Cybersecurity firm Avast shone among mid-caps, jumping nearly 9 per cent after its results. Elegant Hotels, which operates hotels and restaurants in Barbados, soared 57 per cent to 110 pence, the price per share offered by Marriott to buy the AIM-listed company.
The German Dax nudged down 0.2 per cent, while the French Cac 40 closed almost 0.7 per cent lower, with Renault and Danone the notable fallers.
Renault plunged 11.5 per cent after the company cut its full-year revenue and profit forecast amid a broad-based slump in auto sales. The gloomy tone of its results and outlook is likely to focus attention on reports next week from Daimler and Peugeot-maker PSA Group, as well as the next update from Volkswagen.
Shares in food group Danone fell by the widest margin since the financial crisis after it lowered its sales outlook for the year. The maker of Evian water and Activia yoghurt saw its stock close down 8.4 per cent in Paris.
Sweden’s Volvo Group initially declined by the most in a year after forecasting a slump in truck deliveries next year as a result of weaker demand in North America and Europe. The stock later recovered to close 2.4 per cent higher.
Wall Street traded lower early on Friday, putting equities on track to end a strong week on a downbeat note, after worries over global economic growth were rekindled by gloomy data out of China.
Johnson & Johnson slipped 4.2 per cent after a baby powder recall, which put pressure on the blue-chip Dow Jones Industrial Average and the S&P 500 indexes.
Coca-Cola shares gained 2.7 per cent after the beverage maker beat analysts’ expectations for quarterly sales. American Express posted quarterly profit above expectations and reaffirmed its 2019 earnings forecast, but shares of the credit-card issuer slipped 0.7 per cent.
Retailers Macy’s, Gap and L Brands led losses among S&P 500 companies, with declines ranging between 5 per cent and 8 per cent after Credit Suisse downgraded their shares.
Investors are now gearing up for earnings from technology companies next week, including those from Microsoft and Intel. – Additional reporting: Reuters