Irish stocks extend losses

Irish stocks extended their losses today as fears the US economic recovery could remain subdued depressed equity markets.

Investors failed to take much comfort from the fact the United States appears to have averted a debt default. Markets came under pressure after US data revealed an unexpected drop in consumer spending in June, and the Iseq sold off across the board, closing about 1.7 per cent lower.

Index bellwether CRH also fell 1.7 per cent after results from its peer Martin Marietta highlighted continuing headwinds in the US market, to which CRH is heavily exposed. The Dublin-headquartered cement giant tumbled 21.5 cent to just below €12.66.

Smurfit Kappa plunged again today, finishing almost 7 per cent off, or 45.5 cent, at €6.39. The paper and packaging group has had a “desperate run” recently, one trader said, and it has shed about 10 per cent in the last three sessions. Smurfit’s stock price tends to be very volatile, moving up aggressively in positive market conditions but falling sharply when markets turn, he explained.

DIY retailing group Grafton was one of the few names to finish in positive territory. The stock advanced fractionally to finish just under €2.83, despite an interim management statement from Carpetright which indicated that the outlook for the UK market remains challenging.

National benchmark indexes fell in all 18 western European markets today. The United Kingdom's FTSE 100 lost 0.6 per cent, Germany's DAX declined 1.1 per cent and France's CAC slid 0.9 per cent.

Additional reporting - Bloomberg