Evergrande worries and weak German confidence weigh on stock markets

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Shares fell on Friday as concerns over struggling real estate developer China Evergrande and weak German business confidence data prompted investors to post profits after a midweek rally.

Investor concerns over Evergrande resurfaced as a deadline to pay $ 83.5 million in bond interest was passed without a declaration from the company, bringing it closer to a potential default.

Dublin

The Iseq ended the session down 0.5%, following a larger drop in European equities.

Bank stocks stammered, with AIB down 0.48% to end the day at € 2.303, and Bank of Ireland down 0.43% to end the week at € 5.04.

Glenveagh Properties fell to € 1.118, a loss of 0.36% on the day, while CRH was down just under 1% to € 42.63.

Packaging maker Smurfit Kappa saw its shares drop 1.5% to end the week at € 46.93. Kerry Group shares fell 0.6% to € 119.90.

But the airline Ryanair saw its share climb 2.2% to € 16.96, recovering some of the ground lost the day before and rebounding after a low of € 16.345 at the start of the day.

Irish-led but Netherlands-based Corre Energy, a renewable energy company focused on the development, construction and future operation of grid-scale underground storage facilities, as well as generation and the sale of green hydrogen, ended its first week on the Dublin market at € 1.20.

London

The FTSE 100 ended lower on Friday as concerns over slowing global economic growth outweighed gains in health and energy stocks.

The blue chip index fell 0.4%, but ended its three-week losing streak. Retailers, industrial miners and life insurers were the biggest losers.

Healthcare stocks led by AstraZeneca limited further losses, which jumped 2.0% after trials of its prostate cancer drug Lynparza showed positive results.

The index gained nearly 1.3% this week, recording its best week since mid-August, with health and energy stocks leading the rally. However, growing concerns over energy bills, food prices and tax hikes have caused UK consumer confidence to drop sharply this month as people become more pessimistic about the economic outlook.

The domestically-focused mid-cap index fell 0.9% to its third weekly loss. UK sub-contractor Mitie Group rose 2% after raising its profit forecast for fiscal 2022. Land Securities fell 1.4% after saying it sold two business parks for £ 54.3million as part of an exit plan from its non-core activities.

Petrofac gained 24.8% after the oil services provider reached a plea deal with the UK fraud attorney over the investigation into the company’s past deals in the Middle East.

Europe

European sportswear manufacturers Adidas, Puma and JD Sports fell around 3% each after US rival Nike cut sales guidance for fiscal 2022 and predicted delays during the holiday shopping season in due to a tightening of the supply chain.

Retail stocks were the most down in Europe, down 1.7%, while the region-wide Stoxx 600 fell 0.9%. But a three-day rally pushed the index up 0.3% for the week.

Meanwhile, an Ifo Institute survey showed German business morale in September fell for a third consecutive month. Dax in Germany fell 0.7%, ahead of the weekend when the country will vote to elect German Chancellor Angela Merkel’s successor.

The benchmark Stoxx 600 is poised to end September in the red after seven straight months of gains, as rising energy prices and supply chain bottlenecks fueled fears of inflation, while major central banks are planning to cut stimulus measures in the pandemic era.

However, European Central Bank President Christine Lagarde said in an interview broadcast on CNBC that many of the factors behind a recent surge in inflation in the euro area are temporary and could subside next year. .

Italy’s Enel and Eni utilities edged up after the government set aside more than € 3 billion to curb a sharp rise in retail energy bills.

new York

U.S. stock indices fell on Friday after a two-day rally, as concerns persisted over the fallout from heavily indebted China Evergrande.

Six of S & P’s top 11 sectors rose early in the session, with energy, financials and defensive utilities sensitive to the economy leading the gains. Technology and consumer discretionary were the biggest losers.

Nike fell 6.5% to weigh the most on the Dow Jones and S&P 500 after warning of delays during the holiday shopping season, blaming a tight supply chain.

Shares of its counterpart Under Armor also fell 3%, while shoe retailer Foot Locker fell 5.7%.

Mega-cap growth is called Alphabet, Microsoft, Amazon. com, Facebook, Apple and Tesla slipped between 0.3% and 0.9%.

Shares of cryptocurrency-related companies Coinbase Global, MicroStrategy, Riot Blockchain and Marathon Patent Group fell 3.1% to 6.5% after China’s central bank pledged to crack down on crypto trading. currencies. – Additional reports: Reuters

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