Stocks fall as stimulus data awaited

CAELAINN BARR

Global stock markets retreated yesterday leaving some exchanges with the first weekly losses in a month. Investors booked profits following a slew of quarterly reports ahead of central bank meetings next week when further stimulus plans are set to be discussed.

DUBLIN
Irish stocks dipped, tracking losses in European markets, as the Central Bank cut its economic growth forecast for 2013. The Iseq lost 43.9 points, or 1.1 per cent, to close at 4079.7 points.

Airline Ryanair shed 2.45 per cent, to €7.17, following strong gains as investors took profits ahead of the group’s first quarter results on Monday.

Paper and packaging group Smurfit Kappa lost 2.3 per cent, to €14.25 as the stock trimmed gains. Shares rose 19 per cent on Thursday following a deal to refinance its senior debt in a deal that is expected to save the group more than €13 million each year.

Real estate investment trust Green REIT gave up 0.2 per cent, to €1.15 as shares fell following high demand driving gains since its launch earlier this month.

Paddy Power fell 2 per cent, to €61.45 as weak trade in shares continued. The stock has lost 5.6 per cent in the past month.

LONDON
The FTSE 100 closed lower too as the UK's benchmark index was dragged down by heavyweight financials, taking seven points off the index.

UK lenders Lloyds Banking Group and Royal Bank of Scotland fell 0.4 and 3 per cent respectively as brokers at Investec issued cautious notes on both banks ahead of earnings next week. Lenders were also hit after UBS swallowed a $885 million (€667 million) settlement with a US regulator over allegations the Swiss bank misrepresented mortgage-backed bonds during the housing bubble, paving the way for billions more to be paid by other banks.

Results from pay per view operator BSkyB were initially well received by analysts, though its shares fell 3.3 per cent with traders citing profit taking after the 11 per cent rise ahead of the numbers.

Engine maker Rolls Royce made the biggest losses, down 3.2 per cent after Deutsche Bank cut its rating to “sell” the day after results.

Shares in publishing group Pearson rose 6.1 per cent to close just off 12-year highs after it announced the sale of its Mergermarket news service along with first-half results.

EUROPE
Germany's benchmark index led European shares lower as underwhelming company results helped it to underperform its southern European peers.

The DAX fell 0.7 per cent to 8,244.9 and the FTSEurofirst 300 closed down 0.3 per cent at 1,205.2, with investors unsettled this week by profit warnings from some of Germany’s leading companies.

Deutsche Boerse fell 3.7 per cent after its second-quarter earnings missed forecasts.

Steelmaker ThyssenKrupp shed 2.9 per cent after a media report that late-stage talks over the sale of an unprofitable unit had hit a snag, while carmaker Daimler dipped 2.3 per cent.

Belgacom rallied 9.1 per cent to €18.34, its biggest gain since at least 2004, after reporting second-quarter earnings before interest, taxes, depreciation, amortization of €430 million.

France’s CAC rose 0.3 per cent to 3,968.84 with LVMH rising 3.6 per cent after the luxury group joined rival Kering in pointing to an uptick in sales in the second quarter.

NEW YORK
Trade on US markets also trailed with early losses at lunchtime in New York as investors took in earnings results from big names including Amazon.com and Starbucks. With the S&P 500 up about 18 per cent for the year, yesterday provided an opportunity for some profit taking, leaving the S&P down 0.5 per cent, its first fall in five weeks. The Nasdaq has added 5.5 per cent so far this month, its best monthly gain in a year and half. –(Additional Reporting: Bloomberg/Reuters)