Markets slide amid worries over US tapering and European consumer confidence

Irish shares slid yesterday, tracking a downward trend across Europe and the US that has stretched for the last five trading days.

Improving economic data from the US has fuelled bets that the Federal Reserve will reduce bond purchases designed to stimulate the US economy. European stocks, meanwhile, are on their longest losing streak in five months, after the European Central Bank said low domestic demand may hurt the euro area’s economy.

The Iseq dropped by 0.5 per cent, while the UK’s FTSE 100 index lost 0.2 per cent. Germany’s DAX fell 0.6 per cent and France’s CAC 40 shed 1.2 per cent.

DUBLIN
Aer Lingus helped to drag down the Iseq, falling 2.24 per cent to close at €1.31. By midday, it had fallen almost 3 per cent before clawing back some of its lost ground in the afternoon. The company released passenger numbers for November, showing short haul down 5.6 per cent, while long haul was down 6.9 per cent.

Its rival, Ryanair, also fell, ending the day down 0.71 per cent. It also benefitted from an afternoon rally, after losing more than 1 per cent at one point during the day.

Glanbia gained 0.83 per cent on steady trading throughout the day to close at €11. There has been speculation in recent days that the company is close to finalising the acquisition of Cytosport, a US-based sports nutrition company, for $500 million.

LONDON
Tesco fell 2 per cent to £3.33. The largest UK retailer was downgraded by Panmure, which cited a decline in domestic sales that will "inevitably" hurt profits. The retailer is also struggling in Ireland, after it announced an 8.1 per cent decline in sales this week.

AZ surged 50 per cent to £3.95, its biggest gain since it listed its shares in London in 2010. Merck agreed to buy AZ Electronic Materials for about £1.6 billion. AZ stockholders will receive £4.03 for each share.

Phoenix Group Holdings tumbled 6 per cent to 6.61, its lowest price since mid July. Private-equity investor TDR Capital sold 22 million shares, or about 10 per cent, of the insurer at £6.60 each.

EUROPE
Remy Cointreau advanced 2.7 per cent to €61.99 after the maker of Remy Martin cognac said its board has authorised a buyback of up to 2.5 million shares. The company will cancel the shares it purchases.

Vienna Insurance Group slid 5.2 per cent as terms showed that an undisclosed investor has put an €83 million stake in the company on sale.

Merck, a German drug and chemical company, gained 4.9 per cent after agreeing to buy AZ Electronic Materials SA for £1.6 billion ($2.6 billion) to enable its chemicals business to expand into new markets.

NEW YORK
Microsoft was the Dow's worst performer, losing 3.6 per cent to $37.53 after a Ford director said the car company's chief executive, Alan Mulally, would not be leaving until the end of next year. Microsoft's board is looking for a replacement for boss Steve Ballmer, who said in August that he will retire within the next 12 months. Ford rose 0.9 per cent to $16.77.

Costco Wholesale dropped 1.5 per cent to $121.08 and L-Brands fell 0.8 per cent to $62.75 after the retailers posted November same-store sales that trailed analysts' projections, amid steep discounts to entice wary shoppers. Retailers from Wal-Mart to Macy's have been offering deep discounts to customers. Wal-Mart lost 1.1 per cent to $79.34 and Macy's slid 0.8 per cent to $51.64.

Safeway fell 3.3 per cent to $33.07. Jana Partners cut its stake in the grocery chain to about 4.1 per cent. The investor reported a 6.2 per cent holding in the retailer in September.

Electronic Arts tumbled 6.7 per cent to $20.85. Analysts said potential delays releasing a new version of the Battlefield game franchise may hurt results. – Additional reporting by Bloomberg/Reuters