Markets fall as consumer worries outweigh rising energy stocks

European shares fell yesterday, led lower by weaker bank stocks which were hit by some broker price target cuts. Germany’s Dax and the Cac 40 in France were both down by about 0.5 per cent.

The Iseq fell close to 1 per cent while top-flight shares on London’s FTSE 100 struggled as oil firms and financial services groups weighed on the market.

US stocks fluctuated as commodity producers surged with crude oil, offsetting declines among technology and consumer companies as investors assessed China's growth prospects.

DUBLIN
As gloom weighed on financial stocks across the continent, Bank of Ireland spent the entire day in negative territory, finishing the session down 3.2 per cent. It was also the most traded stock on the Iseq on Monday with €32 million changing hands.

Despite releasing a relatively strong set of results, with profits and revenues up, Irish Ferries owner Irish Continental Group fell by 2.25 per cent. It started brightly but fell in the afternoon.

Tullow Oil, whose main listing is in London, rose by 3.6 per cent as oil topped $40 a barrel for the first time this year.

Shares in C&C were briskly traded yesterday, as it finished the day up 1.45 per cent at €3.50.

LONDON
Old Mutual rose 6.9 per cent as the company said it was considering strategic options following a Sky News report that the financial services company was plotting a 9 billion pounds break-up.

Shares in advertising group WPP lifted 17p to 1548p after it said it bought a majority stake in UK digital marketing agency Potato, whose clients include Google and Canon.

The purchase comes after WPP said on Friday its 2015 pre-tax profits rose 2.8 per cent to a record £1.5 billion, buoyed by revenue growth in its US businesses.

Several miners rose after trading lower earlier in the day as a range of commodity prices lifted during the session. Glencore was up 10.8p at 170.8p, Anglo American was 36.1p higher at 628.1p and Antofagasta lifted 42p to 592.5p.

EUROPE
EDF fell 6.7 per cent, after its finance director resigned. The French energy group did not say why he quit but a source familiar with the matter said it concerned EDF's plan to build two nuclear reactors in Hinkley Point, in Britain.

The £18 billion project in southwest England was first announced in October 2013 but a final investment decision has been repeatedly delayed.

Banking shares lost ground, with Goldman Sachs cutting its price targets on Credit Agricole and Societe Generale, while JP Morgan cut its price target on Barclays.

European banks may also be adversely impacted if the European Central Bank pushes its deposit rate deeper into negative territory on Thursday in a bid to boost economic activity in the euro zone.

NEW YORK
Heading into the afternoon session, energy producers had risen toward the highest level since December 23rd.

Murphy Oil soared more than 10 per cent for a fourth day, and advanced for a seventh session amid the longest winning streak since September 2013. The shares are up 60 per cent since the end of February.

Chevron Corp. gained 2.5 per cent amid its longest rally in four months. Brent crude rose above $40 for the first time since December as major producers prepared to meet to discuss a production freeze and US output finally shows signs of declining.

Software companies were the worst technology performers , slipping for a third consecutive session, the most in almost four weeks. Facebook and Google parent Alphabet lost at least 1.6 per cent.

MasterCard fell 1.6 per cent, and Visa declined 2.5 per cent. - (Additional reporting by PA, Bloomberg, Reuters)