Ukraine violence weighs on global markets

Late afternoon sell-off sees Bank of Ireland shares fall more than 4%

Hasbro lost 3.3 per cent to $51.46. The toys and game maker reported second-quarter revenue that fell short of estimates. Photograph: Reuters

Hasbro lost 3.3 per cent to $51.46. The toys and game maker reported second-quarter revenue that fell short of estimates. Photograph: Reuters

 

Shares fell across the globe as fighting erupted in eastern Ukraine, the first major eruption of violence there since a Malaysian airliner was shot down last week. The US and Europe threatened tougher sanctions on Russia over its suspected role in the shooting down of flight MH17, sparking worries among investors about the effect on global trade.

National benchmark indexes fell in 14 of 18 western European markets. The Iseq in Dublin slipped back by 0.4 per cent, the UK’s FTSE 100 slipped 0.3 per cent, France’s CAC 40 lost 0.7 per cent and Germany’s DAX declined 1.1 per cent to its lowest level since May 9th.

DUBLIN

Bank of Ireland

Dalata, the country’s largest hotel company, fell by 2.91 per cent to close the day at €3. Competition for the best hotel assets on the Irish market is hotting up after it emerged over the weekend that Liberty Global billionaire John Malone spent more than €65 million buying the Westin in Dublin.

Ryanair was down more than 0.6 per cent in early morning trading but clawed it all back to close up 0.28 per cent at €6.74. Its rival Aer Lingus, in which it also holds a minority stake, rose by 0.15 per cent, although it was up by close to 1 per cent in the morning before falling back.

LONDON

TescoDave LewisPhilip ClarkeMorrison Supermarkets

BSkyB slipped 1.5 per cent to 904 pence. Rupert Murdoch’s 21st Century Fox may agree to sell its Italian and German pay-TV assets to BSkyB so it can use the proceeds to boost its offer for Time Warner.

A study by Rightmove that suggested asking prices are once again falling in some parts of the UK was followed by a slide in housebuilders’ shares. Barratt Developments, the UK’s third-largest housebuilder by market value, fell 2.6 per cent to 354.2 pence. Persimmon, the largest, retreated 2.3 per cent to 1,246 pence .

EUROPE

Peugeot FiatRenault

Commerzbank fell 1.9 per cent to €10.74. Germany’s markets regulator BaFin found high operational risks and problems in the lender’s internal accounting system in 2013, Capital magazine reported.

Banco Espirito Santo fell 3.1 per cent to 40.7 cents. The Portuguese lender said its executive committee was finalising the appointment of a financial institution as a specialised adviser.

NEW YORK

HasbroMattel

Yum Brands fell 3.5 per cent and McDonald’s dropped 0.9 per cent. Shanghai Husi Food, a fast-food industry supplier, is being investigated on allegations it sold chicken and beef past its expiration date. Yum said that would result in shortages of some menu items.

Allergan jumped 2.1 per cent to $170.85. The Botox maker said it would cut 1,500 jobs as it tried to fend off a hostile takeover from Valeant Pharmaceuticals. Allergan also reported adjusted profit that topped analysts’ estimates. – (Additional reporting: Bloomberg/Reuters)