Europe shares fall amid economic gloom

European shares lost ground yesterday as pessimism over economic growth and loan demand in Europe hit bank stocks, while mixed US jobs data did little to buoy investor sentiment.

Equities had staged a short- lived rally on Thursday after European Central Bank chief Mario Draghi reiterated plans to revive the struggling euro zone economy by pumping more money into the economy.

Traders however cited lingering doubts over the timing and size of possible future ECB measures as well as signals from euro zone banks which suggested the outlook for loan growth remained bleak.

DUBLIN

Dublin traders described yesterday as “unremarkable with little corporate news”. The exception was

Mincon Group

, which fell sharply, down 19.48 per cent to 62 cents.

Mincon, which makes and services drilling equipment, said revenue from its manufactured products division was 9 per cent lower in the third three months of its financial year against the previous quarter.

In an update, Mincon said market conditions in the mining sector were challenging as metal commodity prices fell.

CRH fell 0.89 per cent to €17.85. Stockbroker Davy said it expected CRH's next interim management to be "in line" with previous guidance. "We continue to rate the stock 'outperform' given its financial strength and large exposure to improving US markets."

Independent News & Media fell 0.72 per cent to 14 cent. Editor-in-chief Stephen Rae told the Dublin Web Summit last week that the newspaper industry had seen "more disruption than any other [industry] in the last 100 years."

LONDON

The FTSE 100 Index held firm yesterday despite disappointing US economic data and renewed fears over Ukraine that held back world markets elsewhere. London’s top-flight rose 16.1 points, helped by a rally in commodity stocks prompted by a weaker dollar.

Silver miner Fresnillo set the pace with a gain of 5 per cent or 34.5p to 734p, while BHP Billiton was 48p higher at 1676p and Rio Tinto lifted 71.5p to 3039p.

Supermarket giants Tesco and Sainsbury's surged by 3 per cent at one stage before Tesco settled back to finish 3p higher, at 184.4p while Sainsbury's ended 0.6p lower, at 261.6p.

The FTSE 100 fallers’ board was led by insurance stocks after Admiral became the latest car insurer to highlight competitive trading conditions.

Admiral shares were 3 per cent, or 44p, lower, at 1215p, while More Than insurer RSA Insurance fell 13.9p, to 446.2p.

In the FTSE 250 Index, fashion retailers dominated the risers' board amid encouraging signs for the sector following the return of more normal weather conditions. Buoyed by M&S's better-than-expected update earlier this week, SuperGroup recovered from its recent profits warning to stand 63p higher, to 882p, and Ted Baker climbed 139p, to 2090p.

EUROPE The Stoxx Europe banks index closed down 1.4 per cent, with several Greek banks down 9

-10 per cent and France’s Credit Agricole down 3 per cent. The pan-European FTSEurofirst 300 index lost 0.5 per cent.

German insurer Allianz rose 3.6 per cent after it raised the profit it will pay shareholders as a dividend after reporting a forecast-beating jump in net profit in the third quarter.

Danish wind turbine maker Vestas Wind Systems gained 17 per cent, after raising its full- year guidance and posting a third-quarter result that beat forecasts.

NEW YORK

The dollar slipped and global equity markets were mostly flat on Friday after a solid but below-expectations US jobs report for October took the edge off a months-long rally in both the greenback and stocks.

US job growth increased at a brisk clip in October and unemployment fell to a six-year low of 5.8 per cent, underscoring the American economy’s resilience in the face of slowing global demand. – (Additional reporting Bloomberg, Reuters)