Recovery in European markets not enough to stem weekly losses
Oil stocks rally on Opec deal to cut production
Technology shares in the US bore the brunt of selling, with Netflix and Apple both down more than 2.6 per cent. Photograph: Reuters
European markets had a better day on Friday as shares staged a small recovery and snapped three days of heavy losses. But it wasn’t enough to lift stocks out of their worst week of losses in two months. US stocks continued to decline amid growing worries that the US-China trade row may erupt again and slowing global economic growth.
Oil stocks rallied after Opec and its Russia-led allies agreed to slash oil production by more than the market had expected.
The Irish index closed the market at 5560.05, up 1.22 per cent on the open. The day started out strongly on the back of a US rally near the Thursday close, but tapered off throughout the session as worries about trade wars and the impact of Brexit weighed on sentiment.
Traders noted that although there was a recovery in some stocks, the volumes weren’t enough to make up for the recent sell-off.
CRH ended the day up almost 2.7 per cent at €22.82, and Smurfit Kappa rose 2.2 per cent to €22.36. Glanbia also saw a rise, gaining 2.7 per cent to finish at €16.76. Traders said there was no news boosting the stock, but noted it had been weak recently.
Ryanair was flat on the day, closing at €11.21 and mirroring the sector in general.
Paddy Power slumped 1.3 per cent as gambling firms in the UK voluntarily agreed to an advertising ban on on-game betting, known as whistle to whistle. The company ended the day at €72.40.
Britain’s top stock index rose on Friday after a tumultuous week, supported by a rally in oil stocks after Opec and Russia agreed to cut output, but investors also fretted about next Tuesday’s key parliamentary vote on Brexit.
The FTSE 100 rebounded from Thursday’s plunge to gain 1.1 per cent, but put in its worst weekly performance in two months. Financials, consumer stocks and oil majors boosted the index. BP rose 2.3 per cent, Shell was up 3 per cent for its best day since June, while in the mid-caps Premier Oil had its biggest daily gain since July 2017 and Tullow Oil jumped 7.4 per cent.
Shares in Associated British Foods fell 4.6 per cent after the Primark owner said trading at its budget fashion chain was challenging in November.
The euro zone’s Stoxx index closed up 0.6 per cent but near the session lows as tech losses on Wall Street weighed even as oil rallied and a tepid US jobs report tempered some expectations for fast US interest rates hikes. “Volatility is high and investors are twitchy. It was been a dreadful week for European markets, and today’s positive move can’t mask the previous losses,” said David Madden, market analyst at CMC Markets UK.
Germany’s DAX, with its big exposure to the trade war, has joined the long list of indexes or stocks to fall into bear territory in 2018. It was the only major bourse to close in the red on the day.
Car makers were up only 0.1 per cent after falling more than 4 per cent during the previous session.
US stocks resumed their decline Friday as the Trump administration pressed its trade war with China and the latest batch of economic data added to concern that growth has peaked.
The S&P 500 turned lower after White House adviser Peter Navarro said tariffs on Chinese goods would rise if there’s no trade deal after a 90-day truce expires.
Stocks opened higher after the November jobs report showed moderation in the labour market.
The S&P 500 fell 1.6 per cent as of 11.26am in New York, while the Dow Jones Industrial Average slumped 1.7 per cent and the Nasdaq Composite Index eased 1.9 per cent. – Additional reporting: Bloomberg, Reuters