European shares end four-day winning streak

European shares ended a four- day winning streak yesterday, with battered banking stocks offsetting gains among mining shares boosted by higher metals prices.

The pan-European Stoxx 600 index closed 0.7 percent lower after gaining 7.6 percent in the previous four sessions. The FTSEurofirst 300 index fell 0.6 percent.

In Ireland, traders said it was a “quiet day” in terms of volumes as a result of US markets being closed for a public holiday.

The Iseq Overall index closed down 1.4 per cent, at 5,669.76.

DUBLIN

It was a day of thin volumes on the Iseq with the exchange’s three big heavyweights closing down on the day.

Building materials group CRH finished 1.5 per cent lower, at €25.77, with bookmaker Paddy Power Betfair finishing off 1.9 per cent, at €95.52, and Ryanair closing down almost 2.5 per cent, at €11.55.

Others to lose ground included hotel chain Dalata, down 2.5 per cent, at €3.50, food group Glanbia, which finished off 2 per cent, at €17.08, and Smurfit Kappa, which closed almost 2 per cent lower, at €20.70. Traders indicated that a lack of liquidity rather than news-driven events had led these stocks lower.

Hostelworld was among the main winners on the day, up 3 per cent, at €1.63, while the Green and Hibernia property Reits also advanced.

EUROPE

Monte dei Paschi hit a record low as a European Central Bank request that it sell bad loans raised worries the Italian lender may have to raise capital quickly. Italy's FTSE MIB, down 1.7 per cent, underperformed the market.

Stocks rose last week as expectations that the ECB would step in to support markets eased concerns over Britain’s decision last month to leave the EU.

Both the indexes, however, remain below levels reached before the British vote, which triggered worries about the political and economic outlook for Europe, weighing particularly on peripheral countries like Italy and financial stocks.

Some investors expected caution to prevail before the next ECB policy meeting on July 21st, with strategists at JP Morgan Cazenove saying they did not expect the market recovery to last for much longer.

Europe’s Stoxx 600 Bank index declined 1.6 per cent, led lower by a 3.7 per cent drop in Italian banks.

Europe's Stoxx 600 Basic Resources index, which contains major mining stocks, was the biggest sectoral gainer, up 1.5 per cent, as copper prices rose with the market climbing to a two-month high on expectations of stimulus measures in China. Stocks such as Rio Tinto, Anglo American and BHP Billiton were all up by 0.5 per cent to 1.3 per cent.

Shares in precious metals miners hit new highs, tracking gains in gold and silver prices; Randgold Resources climbed to a record high, Fresnillo was at its best level since late 2012. Their shares rose 7.7 per cent and 4.4 per cent respectively.

LONDON

UK stocks fell, after a four-day rally took the benchmark FTSE 100 Index close to a bull market.

Homebuilders and property investment trusts slumped after a report showed British construction in June unexpectedly shrank at the fastest pace since 2009.

Persimmon and British Land Co slid 6.8 per cent or more. Clarkson sank 16 per cent after the shipping services provider said 2016 profit will be lower than last year.

The FTSE 100 lost 0.8 per cent at the close in London, after earlier rising as much as 0.5 per cent. The benchmark had climbed for nine of the past 11 sessions, with gains interrupted only by a two-day slide in the immediate aftermath of the UK’s vote to leave the EU.

With a weaker pound boosting exporters and commodity producers rallying, the gauge has rebounded 19 per cent from its February low.

NEW YORK

US markets were closed for the Independence Day holiday. – (Additional reporting by Bloomberg and Reuters)