Pound still under pressure over Brexit

European stocks were little changed at the close of the markets, after swinging from gains to losses amid a sell-off in the energy and commodity sectors.

On currency markets, the pound remained under pressure amid fears over a Brexit vote, while crude oil prices suffered from a rise in the dollar and concerns about a market oversupply.

DUBLIN The Iseq index rose 0.75 per cent, as Ryanair advanced 2.6 per cent to €13.75 in line with a rebound for travel stocks across Europe. Stocks fell in the sector on Tuesday in the wake of terrorist attacks in Brussels.

Food group Kerry and paper and packaging company Smurfit Kappa also made gains, climbing 2.3 per cent and 1.8 per cent respectively. Insulation-maker Kingspan was also among the rises, adding 1.5 per cent to €22.65. However, building materials group CRH declined 1.1 per cent to €24.49.

Drinks group C&C added 0.6 per cent to €3.95. The company announced that director Tony Smurfit, the chief executive of Smurfit Kappa, would be retiring from its board.

LONDON The FTSE 100 of blue-chip stocks edged 0.1 per cent higher. Shares in cruise operator Carnival, the International Hotels Group, tour operator TUI and airlines EasyJet and IAG were all up between 0.7 per cent and 1.9 per cent. Mid-cap Thomas Cook, which was also pulled lower on Tuesday by news of a fall in bookings, regained ground to trade up 2.9 per cent.

Kingfisher, Europe's largest home-improvement retailer, climbed 5.9 per cent after reporting profits that beat estimates, citing growth in its UK and Polish markets.

Media group Sky rose 2.4 per cent after analysts at Exane BNP Paribas upgraded the stock from "neutral" to "outperform".

Supermarket operator J Sainsbury advanced 1.3 per cent after analysts at Barclays wrote positively about its takeover of Argos-owner Home Retail Group.

Glencore and BHP Billiton tracked mining stocks lower, while energy stocks also fell.

Mid-cap William Hill slumped 11 per cent, its biggest daily loss in more than seven years, after issuing a profit warning for 2016. Rival betting group Ladbrokes fell 2.6 per cent.

EUROPE The Stoxx 600 fell less than 0.1 per cent at the close of trading, after earlier losing as much as 0.5 per cent and rising 0.6 per cent. In France, the Cac 40 closed 0.2 per cent lower, while Germany’s Dax advanced 0.3 per cent, paring an earlier increase of as much as 1.2 per cent.

Chancellor Angela Merkel’s cabinet approved investment increases for defence and infrastructure in a budget plan that foresees 2.7 per cent higher spending next year and balanced federal budgets through 2020.

French oil company Total was the biggest drag on the Stoxx Europe 600 Index as crude extended its fall after data showed a higher-than-forecast increase in US inventories.

Lenders posted the third-worst performance among Stoxx 600 groups after KBW Asset Management said the European banking sector would struggle to meet its cost of equity over the next three years.

Credit Suisse bucked the trend, gaining 0.9 per cent after announcing an additional 2,000 job cuts. Payment services group Ingenico added 5.1 per cent after predicting profitability would increase over the next four years.

US Stocks declined in thin trading as commodity shares followed crude prices lower, while investors awaited further clues on the economy and direction of monetary policy.

West Texas Intermediate crude declined 3.3 per cent as the dollar gained for a fourth day and a government report showed rising oil stockpiles kept supplies at the highest level in more than eight decades.

– (Additional reporting: Bloomberg / Reuters)