Shares fall on worries over US stimulus

Most European shares fell yesterday marking the close of a volatile quarter with their first monthly loss in over a year, as investors worried about a future reduction in US monetary easing. European shares turned flat towards the end of a choppy session yesterday as investors cautiously positioned for the end of the quarter in light volumes.

DUBLIN
The Iseq advanced 0.1 per cent, gaining 5.44 points 3,963.33. It was a "volatile" day in Dublin yesterday as Friday marked the half year end. "It looked like things were up but it began to ease off as it went into the close," said one stockbroker.

The most traded stocks in Dublin yesterday were Smurfit, Kingspan, CRH, Kerry and C&C. Glanbia had an "unspectacular day" finishing up slightly by 0.49 per cent to €10.35. Kerry Group had a good day and plenty of volume, up 0.55 per cent to €42.40. Bank Of Ireland has been skirting between the 13 and 16 cent mark all week but finished down 3.68 per cent to €0.157. C&C had a reasonable day, down 0.73 per cent to €4.16. Shares in Elan rose 1.9 per cent to €10.75. Index heavyweight, building materials group CRH finished flat at €15.55. Petroneft was one of the biggest fallers on the day, down 14.29 per cent to €0.04.

LONDON
UK stocks declined, paring their biggest weekly gain since April, as miners retreated and a report showed business activity in the US declined more than forecast in June.

Eurasian Natural Resources fell 3.7 per cent, as a gauge of London-listed commodity producers dropped. BAE Systems retreated 2.1 per cent after Deutsche Bank downgraded Europe's biggest defence firm. Serco Group advanced 2.7 per cent after saying first-half sales will grow at a faster pace than it had estimated. African Barrick Gold tumbled 7.7 per cent to 96 pence, a record low. BAE lost 2.1 per cent to 383 pence. Schroders rose 1.3 per cent to 2,183 pence after BNP raised its recommendation on Europe's biggest independent money manager to outperform, similar to buy, from neutral.

The FTSE 100 Index fell 27.93 points, or 0.5 per cent, to 6,215.47. The equity benchmark lost 5.6 per cent this month, for a 3.1 per cent quarterly decline, as the Federal Reserve signalled it may end bond buying next year if the economy improves in line with forecasts.

EUROPE
European stocks dropped, paring their biggest weekly gain in almost two months, as technology companies retreated and a measure of business activity in the US fell more than economists had projected.

The Stoxx 600 declined 0.5 per cent to 285.02 yesterday after earlier advancing as much as 0.4 per cent. France’s CAC 40 Index dropped 0.6 per cent and Germany’s DAX Index slipped 0.4 per cent, while Greece’s ASE Index jumped 2.5 per cent.

Air France-KLM, Europe's second-biggest airline by sales, retreated 2.8 per cent. Mediaset climbed 2.8 per cent to €2.90 after Credit Suisse raised its price target on the broadcaster to €4.40 from €2.65. Schroders, Europe's biggest independent money manager, gained 1.3 per cent to 2,183 pence after Exane raised its recommendation.

NEW YORK
US stocks fell, after the biggest three-day rally since January for the Standard and Poor's 500 Index, as investors weighed economic data and stimulus comments from Federal Reserve officials. Fed governor Jeremy Stein said the central bank is providing more clarity about how it will wind down its $85 billion in monthly bond buying as unemployment falls toward 7 per cent.

Accenture, the world's second-largest technology-consulting firm, fell 11 per cent after its quarterly sales forecast missed analysts' estimates. IBM, the computer services giant, fell 2.5 per cent to $190.70 while BlackBerry, the Canadian smart phone maker fell 25 per cent to $10.82 after reporting a quarterly loss and lower-than-projected sales.