All of 18 western European markets and US indices decline as oil prices slip

Britain‘s FTSE share index posted its biggest weekly loss in more than three years as crude oil prices fell further and disappointing Chinese economic data hit commodity stocks.

Irish aircraft leasing group Avolon’s launch on the New York Stock market valued the the company at more than $1.6 billion (€1.3 billion). Its flotation was the largest ever by an Irish-founded company on the New York Stock Exchange.

DUBLIN

Bank of Ireland announced in the late afternoon that it had agreed to pay €253 million for a portfolio of performing residential mortgages from the special liquidators to Irish Bank Resolution Corporation.

The loans have a face value of €250 million face value and the portfolio comprises about 5,000 loans with about 3,000 customers. The bank closed at €0.32, down 2.10 per cent.

International construction materials group CRH closed at €18.33, a drop of 3.20 per cent.

Kenmare fell 13.04 per cent, to €0.04, Aminex fell 4.55 per cent, to €0.02, and Providence Resources fell 9.52 per cent to €0.76. The Iseq closed at 5,075.63, a fall of 1.9 per cent.

LONDON

The FTSE 100 fell 161 points, or 2.5 per cent, to 6,300.63 points, taking its weekly loss to 6.3 per cent, the biggest since August 2011. The sell-off gathered pace in late trade, mirroring falls on Wall Street.

Trading volume, which had been modest for most of the day, also spiked just before the closing bell to end the day 8 per cent above the FTSE‘s average for the past three months.

Oil and gas stocks fell 3.1 per cent as crude slipped to fresh lows not seen since July 2009 on concerns over a global supply glut and weak demand.

Although the drop in oil prices hurt energy companies, it could help the global economy.

Oilfield services firm Petrofac slid more than 6 per cent, while BP and Royal Dutch Shell were down by about 3 per cent after the latest price fall. BP shares are 20 per cent cheaper in the year to date.

The British mining index fell 2.5 per cent. It was the index‘s seventh straight daily fall. BHP Billiton was off 36p at 1325p and Rio Tinto fell 65.5p to 2682.5p.

The sell-off also covered the retail sector after Next dropped 160p to 6385p and Dixons Carphone slipped 14.3p to 421.6p.

Insurer Aviva was down 4 per cent after insurance analyst Eamonn Flanagan of Shore Capital Stockbrokers reiterated his sell rating.

EUROPE

European stocks retreated, sending the Stoxx Europe 600 Index to its worst weekly slump in more than three years.

All of the 18 western European markets declined. Greece‘s ASE Index fell for a fourth day. The gauge has plunged 20 per cent this week on concern that a potential snap parliamentary election will open the door to anti-austerity leadership.

Commerzbank AG slipped 2.7 per cent after the Financial Times reported the lender will pay more than $1 billion to settle allegations that it violated US sanctions and laws against laundering money.

RWE AG, Germany‘s largest power producer, closed down 3.7 per cent, the largest loss since October 15th, at €27.03.

NEW YORK

US stocks fell, putting the benchmark S&P 500 on track for its first weekly decline in eight. The S&P index had broken a three-day skid on Thursday, buoyed by upbeat retail sales figures and other data that pointed to a strengthening US economy, but finished well off session highs as oil prices slipped.

The Dow Jones industrial average fell 181.03 points, or 1.03 per cent, to 17,415.31, the S&P 500 lost 18.1 points, or 0.89 per cent, to 2,017.23 and the Nasdaq Composite dropped 23.05 points, or 0.49 per cent, to 4,685.11.

Adobe Systems rose 9 per cent to $76 after saying it would buy stock photography company Fotolia for $800 million. It also reported quarterly revenue above market estimates.

(Additional reporting Reuter, Press Association, Bloomberg)