Irish and German bond gap widens

THE ISEQ held up yesterday, down by less than 0.1%, despite yields between long-term Irish bonds and their German equivalents widening further, to their biggest gap for nearly 20 years.

The Irish banking stocks did, however, have a contrasting day. Bank of Ireland fell nearly 2% to 74c, while AIB was up by 1.3%, at 77c.

The bank’s inching upwards coincided with the news that the Polish competition authority said a home-based buyer for its stake in Bank Zachodni would not be blocked, amidst speculation Spanish group Santander is closing in on a firm bid for the asset.

Meanwhile, Irish Life & Permanent (IL&P) shares fell by 4.34%, or 6c, to €1.39, on the eve of the publication of its first half financial results, which are expected to show a significant widening in interim losses. Elsewhere, European stock markets were down by around 0.5%, both the CAC in Paris and Frankfurt’s DAX included.

London’s FTSE was closed for a bank holiday.

While the big Asian markets began the week on an upward trajectory, Wall Streets started cautiously ahead of upcoming jobs data this .

In Dublin, most players fell or remained static, but there were some climbers. CRH inched forward by 1c, to €12.10, despite a downgrade from credit ratings agency Moody’s. Ahead of its interim results announcement, builders merchants group Grafton fell by 2c, to €2.55. Food and dairy products group, Glanbia fell by 4c, to €3.39.