European shares end week on sour note

Stocks worldwide trimmed weekly gains as oil declined for the first time in three days, denting optimism that this year’s rout in commodities was easing. An index of global equities fell for the first time in six days, bringing an end to a rally fuelled by the first signs that producers may consider steps to rein in a record crude glut.

Oil prices were down 4 per cent, with Brent on track to a third straight week of losses as record high US crude stockpiles intensified worries that a plan to freeze world output will do little to reduce massive supplies already in the market.

DUBLIN

The market in Dublin was subdued with little movement of substance for most Iseq constituents ahead of a busy slate of corporate results next week.

Bank of Ireland, which will be first out of the blocks on Monday, saw the most sustained interest with significant numbers traded but the shares closed just under a cent weaker on 24.7 cent.

Outside that, there was some interest in the list REITs – with Hibernia adding 1.2 per cent to €1.26 and Green up 0.22 per cent to €1.353 also ahead of results on Monday.

Index heavyweights CRH and Ryanair both finished in the red with Ryanair closing just under 1 per cent off at €14.16 and CRH 1.35 per cent weaker on €22.985.

Paddy Power Betfair was ahead of the field with a percentage gain of 4.79 per cent to close on €130.15 as it continued to recover from a post-merger hangover. Others to advance on the day included Applegreen, Glanbia and Kingspan, hotel group Dalata.

LONDON

Britain’s top share index fell as energy stocks came under pressure again from dropping oil prices, although the index recorded its best weekly performance since October following strong gains in the previous sessions. The benchmark FTSE 100 index finished 0.4 per cent weaker at 5,950.23 points after hitting a two-week high in the previous session. It gained more than 4 per cent this week.

The oil and gas sector put pressure on the broader UK stock market, with some investors booking profits following this week’s strong gains.

Bucking the trend, shares in bottling company Coca-Cola HBC rose 2.8 per cent after it reported a profit lift following a return to growth for the first time in five years in its established markets.

EUROPE

European shares also turned lower as investors locked in gains following a strong week that has helped to stabilise markets after a tumultuous start to the year.

The pan-European FTSEurofirst 300 was down 0.6 per cent but still up more than 4 per cent since Monday, and set for its best week since October 2015.

The index has been buoyed by gains in bank and energy stocks after a tough start to the year, and the sectors saw profit-taking.

Scandal-hit Volkswagen was under pressure again. The stock fell 3.9 per cent after a media report that VW does not expect to reach an agreement with the United States over its rigging of emissions tests before the end of March.

NEW YORK

The Dow Jones Index and S&P 500 also slipped in morning trade as a renewed slide in oil prices weighed on energy and materials stocks and prospects of a rate hike this year were rekindled by data pointing to firmer inflation trends.

The Nasdaq eked out a gain, led by Amazon and Facebook and as Applied Materials jumped 9.4 per cent on the chip equipment provider’s buoyant forecast. Seven of the 10 major S&P sectors were lower.

The energy sector fell 1.63 per cent and the materials sector dropped 1 per cent. Still, all three major indexes were set to post their best weekly performance this year, with Nasdaq poised for its biggest weekly gain since July.

Crude prices, which have moved in lockstep with the stock market for much of the year, slid about 4 per cent as US crude stockpiles hit a record high. – Additional reporting Reuters/Bloomberg