UK manufacturing lags Irish growth

The positive news on the manufacturing front in Ireland was not mirrored across the Irish sea where UK factory growth slowed more than forecast last month. Italian manufacturing shrank as Europe suffered the fallout from weakening demand. In the US the Institute for Supply Management’s manufacturing index unexpectedly climbed to 59, the highest level since March 2011, from July’s 57.1. Readings greater than 50 indicate growth.

Worries about the Russian assault on Ukraine continued to dampen market enthusiasm in Europe, where the signals from tomorrow’s meeting of the ECB’s governing council will be closely watched.

DUBLIN

Traders said the major action yesterday was around Bank of Ireland with both serious and willing buyers and sellers in the market and some 300 million shares changing hands. Recent upgrades and other factors were thought to be prompting the interest. The stock closed at €0.30, a fall of 0.32 per cent.

Paddy Power was another talking point. The stock closed at €51.30, a rise of 4.48 per cent (albeit on slim enough volumes). Traders were unsure as to what was motivating the interest in the stock.

CRH rose 0.49 per cent to close at €17.55 while Ryanair fell 1.33 per cent, to close at €7.28. Kingspan fell 2.40 per cent,to €12.81, but volumes were thin.

The Iseq index of Irish shares closed at 4,827.36, a fall of 0.1 per cent.

LONDON

Concern that the Bank of England is getting closer to raising interest rates overshadowed optimism its euro zone counterpart will do more to support the economic recovery, pushing UK stocks to close little changed.

The FTSE 100 Index rose 3.86 points, less than 0.1 per cent, to 6,829.17 at the close, after rallying to an eight-week high in the morning. The benchmark gauge climbed 1.3 per cent in August amid optimism that the European Central Bank is ready to start buying bonds. The broader FTSE All-Share Index gained less than 0.1 per cent.

Basic resources stocks were the biggest gainers, with the UK mining index up 1.2 percent as zinc rose to a four-week high and aluminium neared an 18-month peak on increased fund buying.

EUROPE

Equity investors were cautious pending any clues on policy moves from the European Central Bank. Few expect any major steps, but most expect ECB policy to loosen eventually, as persistent disinflation and conflict in Ukraine weigh on the euro zone’s economy.

Some traders believed stock markets had already made their move higher on anticipation of new ECB measures, and therefore had little room to gain any more ground.

National benchmark indexes rose in nine of the 18 western European markets. Germany’s DAX gained 0.3 per cent. France’s CAC 40 slipped less than 0.1 per cent.

Vallourec climbed 5 per cent to €36.01 after UBS advised investors to buy the stock. The French producer of steel pipes for the oil and gas industry will benefit from an improvement in the US onshore market, UBS analysts led by Amy Wong wrote in a note. The shares slumped 13 per cent this year through Monday and reached a 21-month low on August 13th.

NEW YORK

US stocks fell, after the Standard & Poor’s 500 Index had its best month since February, as energy producers sank with the price of crude to offset data showing US manufacturing expanded at the fastest pace in three years.

The S&P 500 fell 0.05 per cent to 2,002.28 at close of trading in New York. The Dow Jones Industrial Average slipped 30.89 points, or 0.18 per cent, to 17,067.56. The Nasdaq Composite Index was little changed near the highest since March 2000. US equity markets were closed on Monday for the Labor Day holiday.

Additional reporting Bloomberg / Reuters