Poor data from China weighs on markets

The Irish market was little changed at the close, finishing down 0.09 per cent with the Iseq index at 6,232.29 as major world markets drifted ahead of the start of the quarterly earnings season on Wall Street. Poor economic data from China also weighed on markets. DUBLIN Smurfit Kappa was the centre of attention in Dublin, closing 2 per cent stronger at €29.50 on foot of continued speculation on a possible takeover approach from US rival International Paper.

Although such talk has been downplayed by “sources” familiar with the scene, trading volumes were high yesterday as some €80 million-€90 million or the group’s shares changed hands.

After a share consolidation last Friday, stock in the State-owned Permanent TSB closed up 30 cent at €6.30 in anticipation that the institution will say in its trading update that it plans an initial public offering. A successful flotation would augur well for the nationalised AIB.

Paddy Power shares jumped almost 3 per cent to a new all-time high of €84.34. An election pledge by Britain's Labour party to give local authorities the power to curb fixed odd betting terminals did not ruffle the stock, although it could yet spell trouble for rival bookmakers. LONDON Britain's top equity index slipped from record highs as surprisingly weak data from China weighed on mining stocks,. The blue-chip FTSE 100 index, which touched a record high of 7,095.36 points on Friday, retreated 29.29 points, or 0.4 per cent, to 7,060.48 points by lunchtime in London.

The FTSE remains up around 8 percent since the start of 2015. Miners such as BHP Billiton, Anglo American and Rio Tinto were among the worst performers.

China’s exports, which had been expected to rise 12 per cent, dropped 15 per cent in March. Its imports saw the biggest decline since the global financial crisis in 2009, heightening concern that Chinese economic growth is slowing.

EUROPE European shares stalled after a recent rally as poor Chinese trade figures knocked mining shares, although mergers and acquisition activity helped keep pan-European indices afloat.

Nokia rose 2.5 per cent as brokers talked up a possible sale of its maps unit. Credit Suisse and UBS both lent credence to reports about imminent bids for the company's maps unit.

The analysts also supported the idea a sale would be a precursor to Alcatel-Lucent's wireless consolidation, sending shares in the French firm up 1 per cent.

Orad Hi-Tec, a German technology provider for broadcasters, surged 35 per cent after agreeing to be bought by US-based Avid Technology.

Volkswagen fell 1.8 per cent after the German carmaker plunged into a full-blown leadership crisis. Chief Executive Martin Winterkorn let it be known on Saturday he will fight for his job even though the group's chairman has reportedly withdrawn confidence in him. US The Dow and S&P 500 edged lower as caution grew about the dollar's impact on US earnings, while the Nasdaq was up slightly after briefly trading above 5,000.

Shares of big pharmaceutical companies were among the biggest drags on the Dow and S&P 500, with Johnson & Johnson down 1.2 per cent.

The dollar gained 0.2 per cent against a basket of major currencies after hitting a peak of 99.99, its highest in four weeks.

Market participants have been concerned about the impact of the currency’s strength on the profits of multinational companies. Corporate earnings kicks into high gear this week.

Estimates for first-quarter S&P 500 results have fallen sharply since January, with earnings for the period expected to have declined 2.9 percent from a year ago, Thomson Reuters data showed.