Irish shares dip ahead of crucial Brexit talks

The Iseq stocks index in Dublin closed lower on Wednesday, even as the as the wider European market advanced, as investors adopted cautious positions ahead of make-or-break Brexit trade talks.

The Iseq index ended 0.7 per cent lower at 7,427.28, while the pan-European Stoxx 600 advanced 0.3 per cent.

Dublin

Banking stocks were mixed, with AIB dipping 0.4 per cent, while Bank of Ireland managed to advance 1.5 per cent as all eyes were on a meeting on Wednesday evening between UK prime minister Boris Johnson and European Commission president Ursula von der Leyen in Brussels.

The last-ditch attempt at a deal to govern post-Brexit trade between the UK and the European Union comes after talks so far failed. Even as officials sounded sceptical of an agreement just three weeks ahead of Britain’s exit from the EU, analysts held out hope.

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"While one should not expect . . . Johnson to make any inroads with Von der Leyen tonight . . . the addition of respective negotiators Frost and Barnier to the guest list is a positive signal," said Oliver Brennan, senior macro strategist at TS Lombard.

Irish Ferries owner Irish Continental Group, which is particularly exposed to Brexit, fell 0.9 per cent to €4.38.

Market heavyweight CRH, which recently downgraded expectations surrounding its UK business, lost 2.4 per cent.

London

The FTSE 250, considered a Brexit sentiment barometer, closed 0.1 per cent higher before the dinner meeting between Mr Johnson and Ms von der Leyen. The blue-chip FTSE 100 edged higher for the seventh session, led by consumer discretionary and communication services stocks.

With the UK this week becoming the first country to begin mass vaccination against Covid-19, investors are betting that business will return to normal sooner than expected.

Among the sectors to have weathered the coronavirus crisis, shares in British kitchens supplier Howden Joinery gained about 5 per cent after it forecast 2020 pretax profit well above analysts expectations.

Meanwhile, food delivery company Just Eat Takeaway. com's shares jumped about 7 per cent on reports that it had recruited 1,000 riders.

Europe

Germany’s DAX closed up 0.5 per cent, but retreated from a three-month peak.

Data showed German exports rose less than expected in October, but foreign trade still gave Europe’s largest economy a boost at the start of the fourth quarter as it struggles to avoid slipping into a double-dip contraction.

Gains in Europe were led by autos, while the tech sector lost, dragged down by a 12 per cent slide in chipmaker STMicroelectronics after it postponed its $12 billion (€9.94 billion) annual sales target by a year to 2023.

Eyes on Thursday will also be on the outcome of the European Central Bank meeting with more emergency bond buying and cheap liquidity for banks expected.

Among other individual stocks, Dutch-based lighting company Signify, slid 4.2 per cent after a downbeat revenue forecast.

New York

The S&P 500 and the Dow Jones Industrial Average indices eased from record levels in mid-afternoon trading as investors kept an eye out for developments related to a fresh economic stimulus deal, with negotiations between government leaders dragging on.

Investors are banking on a long-awaited relief package to mitigate the economic damage from the Covid-19 pandemic that has led to millions of layoffs and overwhelmed the healthcare system.

Johnson & Johnson extended gains from the previous session, when it said it could obtain late-stage trial results for a single-dose vaccine in January, earlier than expected.

Real-estate and utilities sectors posted the sharpest percentage declines. Energy stocks edged higher, tracking higher oil prices.

Shares of DoorDash soared in their debut on Wednesday after the food delivery start-up raised $3.37 billion (€2.78 billion) in one of the biggest US stock market launches so far in 2020.

Home improvement chain Lowe’s jumped after announcing a new $15 billion share repurchase plan. – Additional reporting: Reuters