European shares pull back from 11-month high as oil soars

Europe retreated from an 11-month high on Monday with falls in shares such as Swedish biometric technology firm Fingerprint and Swiss drugmaker Lonza outweighing a rally in oil stocks which reached near 17-month highs.

DUBLIN

It was a subdued day in Dublin with the Iseq closing down 0.7 per cent at 6.390.43 with drinks group C&C and insurer FBD among the main movers.

There was negative sentiment towards financials across Europe and this affected Bank of Ireland, which declined 1.8 per cent to 23 cents. Permanent TSB was also affected, ending the day down 1.4 per cent to €2.78.

Iseq heavyweight CRH was down nearly 1 per cent to €32.04 with Aryzta also losing momentum to close 3.3 per cent lower at €39.90.

State to sell €500m worth of 12-month short-term debt

---

Dow and S&P hit record highs on energy shares surge

---

Irish long-term interest rates hit highest level in 10 months

---

Oil jumps after Saudi Arabia looks likely to cut output

---

FBD continued to rebound, jumping 3.8 per cent to €6.50, while Kerry Group was up 1.3 per cent to €65.85. C&C also ended in positive territory, adding 2.5 per cent to finish at €3.67.

Elsewhere, Providence jumped 10 per cent on low volumes after a new Davy report put a current target value of 35 pence on the stock. It closed at 16 cents in Dublin.

LONDON

Britain’s top share index slipped on Monday after gaining in the previous five sessions in a row, with outsourcing group Capita extending its recent losses and precious metals miners tracking a fall in gold prices to 10-month lows.

Capita fell for a third straight day and closed 5.3 per cent lower after a profit warning late last week; its decision to sell its asset management business also left analysts questioning the group’s strategy.

The blue-chip FTSE 100 touched a fresh one-month high in early deals, before surrendering gains and closing 0.9 per cent lower.

Banks also slipped as some investors took profits after recent sharp gains. The sector index was down 2.4 per cent, dragged down by a 3.3 per cent fall in HSBC and a 2.4 per cent weakening at Barclays.

Shares in Sky fell 2.8 per cent after shareholders and analysts said the Twenty-First Century Fox offer represented a “low-ball” bid.

Greencore closed up 4.4 per cent with very strong trading on the order book after shareholders last week backed its $747 million bid for Peacock Foods.

EUROPE

Swedish biometric technology firm Fingerprint, the biggest faller in the pan-European Stoxx 600, extended recent losses and ended 9.5 per cent lower after cutting its revenue forecast last week.

Shares in Swiss pharmaceutical company Lonza fell 5.3 per cent after it said it was in advanced talks to buy US drugs capsule maker Capsugel.

The Stoxx Europe 600 index finished 0.5 per cent lower after hitting its highest level in around 11 months earlier in the session. It remains down more than 3 per cent so far this year.

Shares in Amundi rose as much as 8.5 per cent to record highs after it said it was to buy rival Pioneer Investments from UniCredit for €3.6 billion.

US

The S&P 500 and the Dow hit record highs on Monday, fuelled by energy shares, while the Nasdaq was lower, dragged down by technology stocks, a day ahead of the Fed’s two-day meeting.

Oil prices gained as much as 6.5 per cent to an 18-month high. Exxon was up 2.54 per cent, providing the biggest boost to the Dow and S&P. Chevron rose 2.2 per cent.

Lockheed Martin declined 3.9 per cent at $249.22 after president-elect Donald Trump tweeted that the company's F-35 programme and costs were "out of control". Other defence stocks, such as General Dynamics, Raytheon and Northrop Grumman, were down between 2.7 per cent and 4.5 per cent.

Elsewhere, Viacom fell 8.5 per cent after Sumner Redstone's privately held National Amusements withdrew its merger proposal for CBS and Viacom.

Additional reporting: Reuters