The Dublin market was flat today as respite from soaring oil prices was offset against a downbeat assessment of the Irish economy and property market.
At 12.30pm the Dublin market was 15 points ahead at 6,108.
Airline stocks enjoyed the morning with oil prices easing back to $126 a barrel. Ryanair shares pared back recent loses when adding 3 per cent to €2.83. Aer Lingus shares were unchanged.
In a report this morning Davy cut its economic growth forecasts from 3.4 per cent to 2 per cent and said the housing slump may last until 2009. This is because the ECB does not look like cutting rates and banks are passing on the cost of higher money to mortgage policies, the report said.
Anglo Irish shares gained 3.4 per cent to €8.84, while Bank of Ireland added just under 1 per cent to €8.06. However, AIB shares were off almost 1 per cent at €12.92.
Other fallers today include building groups McInerney and Kingspan, off 1.2 per cent and 1.4 per cent respectively at €0.88 and €6.63.
Food group Greencore posted a rise in half-year profit today but said record input prices and currency movements would crimp full-year results. Its shares are up 0.6 per cent at €3.25.
Dublin-based Bread and pastries maker IAWS said its bakery business had retained its competitive edge in the inflationary environment, putting the group on track for continued growth and earnings in line with market expectations. At 12.25pm its shares were over 1 per cent ahead on €15.91.
DCC shares were up 1.5 per cent at €15.22.
European stocks and US index futures rose as a two-day drop in oil prices improved the profit outlook for airlines and retailers. Shares in Asia fell.
Deutsche Lufthansa AG, Europe's second-biggest carrier, advanced for a third day, and supermarket chain J Sainsbury climbed the most in a month as concerns eased rising fuel costs will curb earnings and damp consumer spending. Friends Provident and Royal Bank of Scotland Group Plc gained after analysts upgraded the shares.
"Oil has been the big concern for the market in terms of inflation and impact on growth,'' said Ed Wallace, who helps oversee $4 billion in global equities at Gartmore Investment Management in London.
"As a result you will expect to see a slight recovery in broader market sentiment
as the price of crude comes off."
Europe's Dow Jones Stoxx 600 Index added 0.9 per cent to 319.88 at 11:38am in London as all 18 industry groups advanced except for oil shares.
Futures on the Standard & Poor's 500 Index gained 0.2 per cent, and the MSCI Asia Pacific Index declined 0.9 per cent.