Market slump resumes after two days of gains

Dublin stocks retreat across the board during volatile day of trading as CRH falls 1.9%

Tesco Plc climbed 6.1 percent after reporting its first sales growth in more than four years. Photograph: Luke MacGregor/Reuters

Tesco Plc climbed 6.1 percent after reporting its first sales growth in more than four years. Photograph: Luke MacGregor/Reuters

 

European stocks fell, snapping a two-day rebound, amid renewed concern about global-growth prospects. The Stoxx Europe 600 declined 1.5 per cent at the close of trading.

Stocks are continuing to fall over concern China’s slowdown may be worse than expected and the ongoing slump in oil.

In Ireland, the Iseq Overall Index fell by 2.4 per cent to 6,454.55.

DUBLIN

Building materials group CRH fell by 1.9 per cent to €24.395, Bank of Ireland closed down 3.4 per cent at 31.3 cent, Ryanair was 2.7 per cent off at €14.70, packaging group Smurfit Kappa closed down 2.5 per cent at €22.76, and bookmaker Paddy Power finished lower by 5.8 per cent at €114.45.

LONDON

Merlin Entertainments and TUI AG slipped at least 4.9 per cent, among the worst performers in the FTSE 100, after JPMorgan Chase cut its rating on the stocks.

Tesco climbed 6.1 per cent after reporting its first sales growth in more than four years.

Burberry also gained after its quarterly comparable revenue beat estimates.

The FTSE 100 slid 0.7 per cent to 5,918.23 at the close of trading in London. The equity gauge pared losses of as much as 2.2 per cent as energy-related companies and commodity producers, including BP and Anglo American, rallied in afternoon activity.

The UK’s benchmark gauge has lost 5.2 per cent since the start of the year amid concern a currency and stock market rout in China will hurt global growth. It rebounded on Thursday as energy companies advanced.

The broader FTSE All-Share Index lost 0.7 per cent.

EUROPE

Renault plunged 10 per cent after its offices in France were raided by government fraud investigators as part of a probe into vehicle emissions.

Fiat Chrysler tumbled 7.9 per cent after two dealerships filed a federal lawsuit alleging the carmaker offered dealers money to falsify sales.

All Stoxx 600 industry groups dropped, except miners and oil companies. Lundin Petroleum jumped 19 per cent, leading gains among energy producers, after Statoil bought a stake in it.

Travel-and-leisure shares fell the most. Restaurant Group slumped 18 per cent after saying it‘s more cautious than before on the outlook for 2016. Financière Richemont slipped 1.2 per cent after posting its first decline in Christmas sales since 2008.

NEW YORK

The Dow Jones surged more than 180 points, with energy stocks leading a rally in the Standard and Poor’s 500 amid dovish comments from the Federal Reserve’s James Bullard.

Equities from Europe to Asia retreated in the wake of the rout in US stocks, while the US dollar advanced along with Treasuries. Gold and industrial metals slid.

The SandP 500 climbed 1.2 per cent to 1,913.26 in New York, after falling below 1,900, a level its closed below only five times in the past 14 months.

JPMorgan Chase climbed 1.8 per cent after fourth- quarter profit beat estimates amid lower expenses. Best Buy sank 8.9 per cent and GoPro tumbled 16 per cent after reports showing disappointing holiday sales.

– (Additional reporting by Bloomberg)