Positive economic and employment data boosts US shares

European equities began the second quarter of 2016 with a slump, as weak oil prices weighed on the shares of major energy companies. This sent stocks tumbling to a one-month low. European shares pared losses and US stocks rose on reports that US employment increased solidly in March and manufacturing activity in the economy expanded last month for the first time in six months on a surge in new orders. Analysts said the data was unlikely to change thinking at the Federal Reserve, where chair Janet Yellen has signalled a cautious stance on future interest rate increases.

DUBLIN

The Iseq index fell 0.6 per cent as most of its biggest stocks fell. The main stock-related news of the day saw

Fyffes

climb 7.9 per cent to €1.50 as the fruit distributor announced it had moved into the North American mushroom market with the acquisition of Highline Produce.

Building materials group CRH, the largest stock on the Dublin market, slipped 0.3 per cent to €24.76, paper and packaging company Smurfit Kappa fell 1.5 per cent to €22.31 and food group Kerry finished down 0.7 per cent to €81.31.

As oil prices weakened, Ryanair nudged up 0.2 per cent to €14.20, but there were drops for Glanbia and Paddy Power Betfair on a day of lacklustre sentiment across Europe.

LONDON

The FTSE 100 index closed down 0.5 per cent, which represented an outperformance on other major European indices. A drop in oil prices pushed down the shares of BP and

Royal Dutch Shell,

with investors growing increasingly sceptical that a looming deal to freeze crude production could clear a global glut in the oil market.

Pharmaceutical group Shire was the biggest gainer, climbing 3.1 per cent after analysts at Citigroup raised their recommendation on European healthcare companies to neutral. Sainsbury's also saw its share price take a hit after winning a four-month battle to buy Argos owner Home Retail Group. Its shares fell 0.3 pence to 276.6 pence.

Commodities giant Glencore, multinational bank Standard Chartered and publishing group Pearson were also among the fallers.

EUROPE

The pan-European FTSEurofirst 300 index was down 1.5 per cent at its close, hitting its lowest level in a month earlier in the session. This comes on top of a 7.7 per cent fall for the index in the first quarter. In Germany, the Dax fell 1.7 per cent on Friday, while France’s Cac 40 declined 1.4 per cent.

Energy stocks dropped 2.7 per cent as a decline in crude oil prices pushed down the shares of the London-listed BP and France's Total.

Munich-based lighting and semiconductor specialists Osram fell after Apple dropped the company from its list of top suppliers, replacing it with Dutch company Philips as part of a supply-chain reshuffle ahead of the release of the iPhone 7.

Shares in steelmaker Thyssenkrupp rose 4.9 per cent after German business paper Rheinische Post reported that India's Tata Steel was planning to take a stake in Thyssenkrupp's European steel unit. Airbus Group slipped 2.7 per cent after German newspaper Bild suggested engine problems would delay the deliveries of its A400M aircraft.

NEW YORK

Stocks on Wall Street edged up yesterday on better-than-expected US jobs and factory data, suggesting stronger corporate earnings ahead. However, US crude fell $1.42 to $36.92 a barrel, while a gloomy Japanese manufacturing report kept a damper on global equity markets.

Roles were reversed among the S&P 500’s 10 main industries, with investors selling last month’s biggest winners, energy producers, and scooping up healthcare shares, which lagged the most in March.

West Texas Intermediate futures slid 3.8 per cent, Chevron fell 1.4 per cent, while Transocean and Marathon Oil sank more than 5.6 per cent. Regeneron Pharmaceuticals jumped 11 per cent, the most in two years.

Investor attention is now shifting to the earnings season, which unofficially kicks off when Alcoa reports first-quarter results on April 11th. – (Additional reporting: Bloomberg/ Reuters)