European and US markets see falls in oil and gas shares

European shares ended a choppy session in negative territory yesterday, with drugmaker Shire falling sharply after announcing it would buy Baxalta, and commodity shares tracking oil and metals prices lower.

Wall Street struggled for gains in volatile early trading, weighed down by healthcare stocks and oil prices hitting fresh 12-year lows.

DUBLIN

The Dublin market outperformed its European peers, with the ISEQ index ending near flat at 6,554.26.

The majority of stocks ended the day flat or down. However, the ISEQ was boosted by packaging company Smurfit Kappa which surged 4.1 per cent on decent volume to end the day on €23.56.

Tullow Oil got another hammering as oil prices globally hit fresh 12-year lows. Tullow slumped 3.2 per cent to finish the day at €1.86.

Independent News & Media fell 1.71 per cent to 17 cent, while Kerry Group was down 1.11 per cent at €74.59.

Paddy Power stocks also retreated, sliding 0.9 per cent to €124.40.

LONDON

Britain’s top share index fell to extend a four-day losing run after posting its worst first week of the year since 2000, hit by late falls in

Shire

and energy firms.

British-listed pharmaceutical firm Shire had a $32 billion bid accepted for Baxalta International, catapulting it to a leading position in treating rare diseases. After rallying on the news, the stock turned lower to trade down 8.2 per cent. While traders said the deal made strategic sense, there was wariness over the price offered.

The blue-chip FTSE 100 index was down by 40.61 points at the close, or 0.7 per cent, at 5,871.83 points, ending in negative territory for a fourth straight session.

Oil companies also fell, trimming 8.5 points off the FTSE 100 after US crude hit its lowest level since December 2003.

Sports Direct fell 7 per cent, after suffering broker downgrades following a profit warning last week. The sports retailer has fallen 30 per cent in the six trading days so far in 2016.

The FTSE 350 Mining sector touched its lowest level since 2004.

EUROPE

After a day of fluctuations, European stocks finally closed at their lowest levels since September, extending losses after their worst weekly plunge in more than four years.

The Stoxx Europe 600 Index erased its gain in the final hour of trading, falling 0.3 per cent at the close as commodity producers reversed advances.

Germany’s DAX Index, which heavily relies on exporters, slipped 0.3 per cent, after earlier climbing as much as 1.3 per cent.

Volkswagen – among the biggest DAX decliners last week – rose 1.7 per cent.

Qiagen slumped 11 per cent after saying fourth-quarter results were disappointing.

Spain's Banco Santander advanced 1 per cent after Exane BNP Paribas recommended investors buy the shares.

NEW YORK

US stocks fluctuated, struggling to rebound from the steepest weekly sell-off in more than four years as investors remained anxious that China’s slowdown will spread.

Concerns that weakening demand from the world’s second- largest economy will persist weighed on commodities as crude oil fell for a sixth day and copper slumped to the lowest in more than six years.

Miner Freeport-McMoRan sank 18 per cent, while Caterpillar lost 2.7 per cent.

Biotechnology shares extended their longest rout in three months to drag down the health-care group.

Macy's gained 4.2 per cent amid pressure to pursue real-estate deals.

The Dow Jones ended down 16.43 points, or 0.1 per cent, at 16,330.02. The S&P 500 was down 6.85 points, or 0.36 per cent, at 1,915.18 and the Nasdaq Composite index was down 29.17 points, or 0.63 per cent, at 4,614.46.

– Additional reporting: Bloomberg, Reuters