Markets fall as poor numbers from China sour sentiment
Kingspan bucks trend in Dublin after reporting positive quarterly figures
Kingspan shares increased nearly 5% to €23.35 on the back of positive quarterly numbers and a full-year profit forecast of €250m
World equity indexes fell and oil prices weakened on yesterday as disappointing trade data in China stoked further concerns over weakening global growth.
Data showed China’s October exports fell for a fourth month, while imports also dropped, leaving the nation with a record high trade surplus of $61.6 billion.
Also not boding well for world growth, the Organisation for Economic Co-operation and Development cut its 2015 global growth forecast again. But it said the US Federal Reserve should raise interest rates as the US economic recovery gains steam.
Recent data showing robust US job growth has boosted bets for a long-anticipated December rate hike by the Fed.
Insulation maker Kingspan bucked the trend, rising nearly 5 per cent to €23.35 on the back of positive quarterly numbers and a full-year profit forecast of €250 million.
Bank of Ireland traded in line with other financials, falling 1.8 per cent to €0.32. Ahead of results today, Permanent TSB fell 2 per cent to €4.05.
After several strong sessions last week, Ryanair shed nearly 2 per cent to close at €14.50
Drinks group C&C traded marginally up at €3.67 – better than most sector rivals. Iseq heavyweight CRH was down 2.4 per cent at €25.53 in line with weaker markets globally.
Britain’s top share index hit a three-week low, however, with Intercontinental Hotels Group shares fell 4.4 per cent after the hotelier denied a media report. On Friday, IHG shares had jumped more than 6 per cent following the report saying it was looking at its strategic options.
The blue-chip FTSE 100 index was down 0.6 per cent at 6,316.30 points by 1603 GMT after falling earlier in the session to 6,306.68 points, the lowest level since mid-October. The index is down more than 3 percent so far this year. EUROPE European stocks fell, after rising four times in the past five days, as investors weighed the outlook for global economic growth and stimulus. Shares of exporters fell after a worse-than-forecast Chinese trade data. Continental led carmakers lower, losing 5.2 per cent, after its sales missed analysts’ projections.
Renault slid 3.6 per cent after France, the company’s biggest shareholder, said it would oppose a merger with Japanese partner Nissan. Hermes International and Christian Dior were each down 2.4 per cent.
“There is some caution on the consumer side and export-led sectors that comes from questions about the Chinese economy and emerging markets as a whole,” said Pierre Mouton, a fund manager at Notz, Stucki and Cie in Geneva.
The sell-off was broad based, with all 10 major S&P sectors in the red, led by a decline in consumer discretionary and energy stocks. Priceline was the biggest drag on the S&P 500 and the Nasdaq, falling 8.2 percent to $1330.93 after a weak fourth-quarter profit forecast.
Rival Expedia also fell 1.2 per cent to $131.69. A fall in oil prices led to a 1.3 per cent decline in the energy sector. Exxon and Chevron were down nearly 2 per cent. Alphabet, Microsoft and Amazon were all down more than 1 per cent.
Additional reporting, Reuters/Bloomberg/PA