Oil decline and Greek exit risk hit markets

Stock prices fell on global markets, stuck in a dismal start to 2015 on tumbling oil prices and the possibility of Greece leaving the euro zone, as nervous investors bought more gold, yen, low-risk government bonds and other safe-haven assets.

The euro, which hit a nine-year low against the dollar at the start of the week, failed to recover ground, edging slightly lower.

DUBLIN

The Iseq index fell 79 points or 1.5 per cent to 5,086.19, on what was “a pretty rough day on the markets” according to one stockbroker.

Among the movers contributing to the Iseq decline was Paddy Power, which closed down 4 per cent at €63.78. The stock was downgraded by three brokers. Morgan Stanley cut the stock to underweight, while Goldman and Nomura downgraded it to neutral.

C&C declined 1.1 per cent to finish at €3.65. The drinks group withdrew its €1 billion offer for Spirit Pub, saying the UK pub group no longer meets C&C's risk adjusted return criteria.

Index heavyweight CRH fell 2.4 per cent to €18.73, on the back of weaker US data. Bank of Ireland also declined, finishing down 1.2 per cent at 30 cent.

Shares in Total Produce were 1.3 per cent higher at €1.06, while Aer Lingus gained 3.3 per cent to €2.32.

LONDON

UK stocks declined for a third day, the longest losing streak in three weeks, as a drop in bank shares outweighed an advance in mining companies.

HSBC and Lloyds Banking fell 1.7 per cent, while Rio Tinto and Anglo American climbed more than 2 per cent.

Shares of Ashtead, a UK industrial-equipment-hire company, plunged 6.4 per cent, the worst performer on the FTSE 100 index. Ashtead, which earns most of its revenue from North America, slid after Evercore ISI warned of contagion for its US peers from dropping commodity and energy prices.

The FTSE 100 Index finished 50.7 points (0.8 per cent) lower at 6,366.5 but had been down by as much as 90 points at one stage.

EUROPE

European stocks erased gains in the final hour of trading, falling to an almost three-week low. Data showed euro zone manufacturers registered almost no growth in the fourth quarter, putting pressure on the European Central Bank to take bold steps to avert the region from slipping into recession.

The Stoxx Europe 600 Index retreated 0.7 per cent to 331.61 at the close of trading after rising as much as 0.6 per cent amid a rebound in energy shares.

Banks in the Stoxx 600 fell 1.5 per cent, contributing the most to the day's decline. Banco Santander lost 1.7 per cent, while BNP Paribas fell 2.6 per cent.

The DAX in Frankfurt gained seven points (0.1 per cent) to close on 9,484, while France’s CAC was 28 points (0.7 per cent) lower at 4,083.

NEW YORK

US stocks fell in choppy trading, extending losses a day after Wall Street suffered its biggest drop since early October as data showed the pace of growth in the US economy had slowed.

After unexpectedly strong third-quarter economic growth, data pointed to slowing growth in the fourth quarter as the pace of expansion in services moderated, while new orders for manufactured goods fell for a fourth consecutive month.

AOL shares rose 3.4 per cent to $46.24 in early trading, the day after a report that Verizon Communications approached AOL about a potential acquisition or joint venture.

JPMorgan Chase, United Technologies and American Express slid more than 2 per cent to lead declines in the Dow Jones Industrial Average. Trip Advisor plunged 4.5 per cent as internet firms retreated.

The S&P 500 fell 0.8 per cent to 2,003.85 at 12.42pm in New York, sending the gauge lower for a fifth straight day. Additional reporting: Bloomberg / Reuters