Stocks slide again over concerns about global growth

Another day of losses for European stocks was prompted by concerns global growth is weakening and by uncertainty about the timing of an increase in US interest rates.

Stocks struggled to gain ground despite a dovish set of minutes from the US Federal Reserve, suggesting investors were nervous about global economic growth and weak inflation that has pushed back a potential interest rate hike.

DUBLIN

The Iseq index slid 2.2 per cent as its biggest stocks went into retreat in tandem with stocks across Europe.

CRH

fell 2 per cent to €26.62, while

Ryanair

declined 1.9 per cent to €12.51.

Kingspan

fell 3.7 per cent to €21.95 ahead of its interim results, due on Monday morning.

Both cyclical stocks exposed to the world economy and defensive stocks lost ground.

Glanbia dropped 2.5 per cent to €18.01 and Kerry fell 2.8 per cent to finish at €66.79. C&C closed at €3.43, down 2 per cent. Green Reit fell 2.9 per cent to €1.53. Smurfit Kappa closed down 2.5 per cent at €27.15. Irish Continental Group was one of few climbers, rising 1.65 per cent to €4.32.

LONDON

The blue-chip FTSE 100 index fell to its lowest point in seven months after its worst losing run in four years.

The index dropped 0.6 per cent to its lowest level since January, having fallen every day since China devalued its currency last week. It is now about 10 per cent below an all-time high in April, putting it officially into “correction” territory.

The FTSE falls came despite a bounce-back among miners, with Randgold Resources up nearly 6 per cent to 4,255p and Fresnillo and Anglo American also climbing.

Kaz Minerals surged 13.9 per cent after Kazakhstan floated its currency, the tenge, sending it tumbling. About 45 per cent of Kaz's cost base is denominated in tenge.

The biggest fallers on the FTSE 100 Index were Mondi, Prudential, Taylor Wimpey and Carnival.

EUROPE

Greek stocks and bonds dropped as prime minister

Alexis Tsipras

was poised to announce snap elections after the approval of a bailout of €86 billion from the European Stability Mechanism rescue fund. The Athens Stock Exchange index closed down 3.5 per cent.

Germany’s Dax and France’s Cac 40 index both fell 2 per cent. German shares chalked up a fifth successive day of decline in a selloff that has particularly hurt exporters. The Dax reached a seven-month low.

Gamesa and Vestas Wind Systems slid 8.1 per cent or more after analysts at Credit Suisse cut their rating to underperform, similar to sell.

Royal Ahold climbed 2.3 per cent after reporting quarterly profit that topped analysts' estimates. Delhaize Group, which is merging with Ahold, added 2.9 per cent.

NEW YORK

Wall Street fell more than 1 per cent yesterday morning, pushing the Dow Jones and the S&P 500 into the red for the year, after the Federal Reserve highlighted global growth concerns and as Walt Disney dragged down consumer discretionary stocks.

Apple fell 1.3 per cent, weighing the most on the Nasdaq and the S&P 500, after a report from research firm Gartner said China smartphone sales fell for the first time ever in the second quarter.

Netflix, the best performer in the Standard and Poor's 500 Index this year, joined a decline in media stocks, falling the most since October. It fell 6.7 per cent to $113.87 by lunchtime in New York after dropping as low as $111.34.

Media companies were among the big losers in the S&P 500, with Walt Disney Company, CBS, Viacom and Time Warner all down more than 3.5 per cent after an analyst at Sanford C Bernstein downgraded the sector, saying subscriber fees and advertising sales are at risk as the pay-TV industry loses viewers.

Meanwhile, oil in New York traded near the lowest level in more than six years. – (Additional reporting: Bloomberg / Reuters)