Ireland holds steady as Europe wobbles

A boost for Wall Street from strong US jobs data came as European stocks lost further ground amid disappointment at the European Central Bank’s new stimulus plan. However, the Irish market held steady.

DUBLIN

The Iseq index finished out at 6,773.43 points, up 0.32 per cent on the day and unperturbed by declines in other European markets.

“On a week where Europe is down 3.5 per cent, the Iseq has roughly come out flat on the weeks,” said a Dublin trader.

“Despite the ‘Draghi drag’, as they’re calling it, the Irish stocks to a man have actually had a pretty good time, on the back of very strong exchequer returns during the week and very positive trading updates.”

Traders link the relative resilience of the Dublin market to investor confidence in companies with high exposure to the resurgent Irish economy. “Anything to do with Ireland is in pretty good shape at the moment.”

Having reached new highs, however, hotel operator Dalata and ferry operator ICG each lost ground on Friday. Dalata was off almost 1 per cent on the day as it finished the week at €5.05. ICG gave up 2.21 per cent on the day to finish just under €5.35.

Fuel retailer Applegreen gained 0.92 per cent on the day to close at €5.50, erasing some of the ground it lost before news this week that rival Topaz is being sold to Canadian group Couche-Tard.

Applegreen shares were at €5.80 before the Topaz deal on Wednesday. However, Couche-Tard is seen by the market as a “rational customer”. Traders reckon it is unlikely to impose severe pricing pressure on Applegreen.

LONDON

Britain’s top equity index fell, extending losses from the previous session caused by disappointment over the ECB policy update, with miners and oil stocks reversing previous gains after a statement by OPEC.

OPEC members failed to agree an oil production ceiling on Friday at a meeting that ended in acrimony, after Iran said it would not consider any production curbs until it restores output scaled back for years under Western sanctions.

Oil stocks BP and Royal Dutch Shell both slumped 2.4 per cent, while miners Glencore and Anglo American were down 3.2 per cent and 2.8 per cent respectively.

EUROPE

European shares dropped, extending losses from the previous session when the ECB’s new stimulus plan disappointed some investors, as falling oil stocks adding pressure.

Oil stocks turned lower, falling 1.5 per cent, as crude prices dropped on news from the OPEC meeting.

The pan-European FTSEurofirst 300 index fell 0.34 per cent to its lowest level in almost three weeks. On Thursday, the index slipped 3.3 per cent after the ECB’s policy decisions fell short of high expectations.

“In an environment where you were expecting central banks to pump in more liquidity and you don’t get it, then investors are just reassessing their expectations of what central banks are going to deliver for them,” Commerzbank economist Peter Dixon said.

NEW YORK

All three major US indices were up more than a per cent after stronger-than-expected jobs data built the case for the Federal Reserve to raise interest rates this month for the first time in nearly a decade.

All but one of the 10 major S&P 500 sectors were higher. The energy index fell after news that OPEC would maintain its production in an oversupplied market.

The financials index led the advancers with a rise of 1.9 per cent. Benchmark Brent oil futures and US crude futures were down about 2 per cent on the OPEC news.

Non-farm payrolls increased 211,000 in November while September and October data was revised to show 35,000 more jobs than previously reported. The unemployment rate held 5 per cent, the lowest level for more than seven years.

– (Additional reporting: Agencies)