Markets go from euphoria to gloom

Equity markets retreated after Thursday’s gains, and investors focused again on the underlying weaknesses in the global economy.

Investors showed renewed caution in the wake of the euphoria that followed the US Federal Reserve’s interest rate hike, although the FTSE 100 index in London still set its biggest weekly gain in a month.

Dublin

Ryanair was one of the best performers on the Iseq, finishing up almost 2 per cent. It recorded a late afternoon surge to close at €15, and is up about 50 per cent over the course of the year. Airline stocks have surged on the back of the steep fall in oil prices, which translates into lower fuel bills.

C&C was down almost 3 per cent by midday, before recovering somewhat to finish down 1.4 per cent. The company’s chief executive has vowed to shareholders he can return the company to strong growth. It has been hit by strong competition in its main cider markets.

Bank of Ireland dropped 1.8 per cent in afternoon trading, and was one of the most heavily traded stocks during the day, with €52 million worth changing hands on Friday.

London

ARM Holdings was down 2 per cent in a week marred by profit and outlook warnings from chip designers such as Imagination Tech and Dialog Semiconductor.

Analysts also cited concerns surrounding potential weakness in shipment volumes of Apple’s iPhones next year. ARM’s technology powers the iPhone.

Oil stocks also suffered on a weakening oil price, with BG Group the top faller, down 4 per cent, and BP also retreating 0.3 per cent.

In positive territory, cruise operator Carnival rallied 2.6 per cent after investors were cheered by a positive set of earnings results.

Miner Anglo American was the top riser, gaining 5.7 per cent, while BHP Billiton, Rio Tinto and Antofagasta were all up between 0.3 per cent and 2.5 per cent.

Europe

French TV company TF1 was among the worst performers, declining by 3.9 per cent after brokerage Kepler Cheuvreux cut its rating on the stock to "reduce" from "buy".

Shares in French company Casino rose 1.5 per cent. On Thursday, the stock fell 11.5 per cent after research firm Muddy Waters said it was one of the “most overvalued and misunderstood” companies it had come across.

Danish oil and shipping group Maersk fell nearly 3 per cent, citing the fall in oil prices and the negative effects on its container businesses.

Altice slid 5.9 per cent after a record three-day surge, dragging a telecommunications gauge to the worst performance of the 19 industry groups on the Stoxx 600, as the US Justice department asked for a decision on the bid for Cablevision Systems to be deferred.

Telefonica Deutschland Holding AG dropped 1.3 per cent after Morgan Stanley cut its recommendation to the equivalent of a sell.

New York

Consumer staples shares in the S&P 500 benchmark were on track for their biggest two-day slide in three months.

Coca-Cola and Clorox fell at least 1.9 per cent heading into the afternoon. CarMax tumbled 9.1 per cent, the most in almost three months, after the used-car dealer's quarterly results missed estimates.

Freeport-McMoRan rebounded 4 per cent to lead the advance in raw materials. The copper producer's shares sank 8.5 per cent, the most in two months. Alcoa added 1.9 per cent to climb for the fourth time in five days.

Boeing fell the most among members of the Dow Jones Industrial Average after analysts warned that cheap oil and rising interest rates could clip near-term aircraft sales. Boeing declined 3.8 per cent to $140.06 around midday, after dropping as much as 3.9 per cent. – (Additional reporting: Bloomberg/Reuters)