Quiet day on Dublin’s Iseq as Glanbia and Permanent TSB down
Crude oil futures hit a six-month high as consumption begins to outstrip production
Traders at the New York Stock Exchange on Monday. The benchmark US Treasury yield rose after matching a one-month low on Friday. Photograph: Michael Nagle/Bloomberg
Crude oil futures hit a six-month high yesterday as output disruptions were expected to eat into a long-standing glut in the market, while higher commodity prices boosted basic materials and energy shares. The benchmark US Treasury yield rose after matching a one-month low on Friday.
Supply disruptions in Nigeria, Canada and Venezuela have most likely pushed oil production below consumption levels in May for the first time in at least two years. That means the world has started eating into the huge piles of oil that knocked as much as 70 per cent off crude prices between 2014 and early 2016.
The underperformer of the day was Permanent TSB, which traded down 3.6 per cent at €1.88. The stock has been weak since last week’s trading update and on the back of news the Government plans to exert further pressure on banks to reduce their variable mortgage interest rates.
Food group Glanbia was down 1 per cent to €16.43 with over a million shares traded.
Ryanair rose 2 per cent to €13.09. It will have numbers out next week, which should indicate the pressure on yields amid a downturn in demand linked to terrorist attacks.
Irish Ferries owner ICG traded up 2.4 at €5.03 following a positive set if results last week.
Bookmaker Paddy Power Betfair rose nearly 1 per cent to €113.85 as the market awaits further details on the synergies achieved by the recent merger.
The UK mining index rose 2 per cent after metals prices rose following a softer dollar and data showing an improvement in China’s property sector, offsetting several softer gauges of the country’s economy that had raised concerns over the demand prospects for industrial metals. Shares in Antofagasta, Glencore and BHP Billiton were up 1.9 to 3.4 per cent. Among small caps, miner Lonmin surged nearly 20 per cent after reporting a first-half core profit of $36 million, up from a loss of $6 million the same time a year ago.
The Stoxx Europe 600 Index fell less than 0.1 per cent, trimming a decline of as much as 0.7 per cent, as a rise in commodities and oil sent their producers up the most among industry groups.
Telecom Italia climbed 4.6 per cent after almost tripling its target for reducing expenses to €1.6 billion by 2018.
Eutelsat Communications dropped another 5.4 per cent, after tumbling a record 28 per cent on Friday following its earnings report, as Morgan Stanley lowered its rating on the French satellite operator to the equivalent of a sell.
NEW YORKAppleBerkshire Hathaway
Oil jumped more than 2 percent to its highest in six months due to disruptions in Nigerian output and after Goldman Sachs said the market had ended almost two years of oversupply and flipped to a deficit.