European shares close down as energy stocks decline

European shares closed lower on Wednesday, weighed down by declines in energy stocks, but global markets also turned jittery as Covid cases rose in China. The country scrapped its quarantine rules for inbound travellers starting from January 8th on Monday.

Dublin

The Irish index of shares ended the day marginally lower as bank shares dipped and travel stocks also declined.

Ryanair shares fell almost 2 per cent in the day’s trading, ending the session at €12.32. The stock ticked lower over the day after Italy’s antitrust regulator said on Tuesday it had opened an inquiry into possible price-fixing for flights in and out of Sicily by airlines including Ryanair, Wizz Air and EasyJet.

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Banking stocks were mixed, with AIB and Permanent TSB shedding 1.2 per cent and 2.43 per cent respectively, while Bank of Ireland added just under 1.4 per cent to end the day at €8.95.

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Kerry Group shares added 1.9 per cent, while Glanbia gained just under 1 per cent to end the day at €11.79, but volumes were lower than normal.

London

Britain’s FTSE 100 outpaced peers after a Christmas holiday, as China’s dismantling of Covid-19 restrictions pushed miners and banks higher, while the index still remained cautious of surging cases.

The large-cap FTSE 100 the mid-cap FTSE 250 added 0.3 per cent each.

Miners gained 0.5 per cent, tracking rising copper prices after top-consumer China’s easing boosted hopes of improving demand.

China-focused insurers and banks such as Prudential and HSBC Holdings also rose, gaining 0.6 per cent and 1.5 per cent respectively.

Airlines like Wizz Air and EasyJet slipped 4.1 per cent and 2.3 per cent respectively, after Italy’s antitrust regulator opened an inquiry into possible price-fixing.

Argo Blockchain soared 76.7 per cent as the company said it will sell its crypto mining facility Helios to avoid bankruptcy.

UK markets were closed on Monday and Tuesday for St Stephen’s Day and Christmas Day holidays.

Europe

The region-wide STOXX 600 dipped 0.1 per cent, European miners added 0.6 per cent as copper prices rallied on hopes of a demand recovery in the world’s second-largest economy after China further eased its stringent Covid curbs on Monday.

Energy stocks fell 0.8 per cent, tracking lower oil prices.

Meanwhile, the STOXX 600 was headed for an annual loss of more than 12 per cent as concerns about an economic recession due to aggressive monetary policy tightening by central banks globally weighed on the European index.

The technology sector fell 0.9 per cent, tracking falls in US peers as rising yields pressured the interest rate sensitive shares, a recurring theme this year.

Tech shares have fallen nearly 28.4 per cent so far in 2022.

Germany’s Infineon fell 1.5 per cent amid broader tech moves and after chief executive Jochen Hanebeck said it is ready to spend several billion euros on the right takeover target as it searches for acquisitions.

Traders and analysts said thin trading volumes also influenced market moves.

New York

US stocks slumped for a second day in thin holiday trading and Treasury yields ticked higher, as hopes for a year-end rally faltered.

The S&P 500 coughed up an early advance, with sentiment worsening on concern that the end of China’s zero-Covid policy could lead to a rise in cases around the world. Trading volumes were about 20 per cent below the 30-day average at this time of day.

Tech shares remained under pressure in the US, even as Tesla sought to halt a seven-day rout prompted by concerns about ebbing demand.

Elsewhere in markets, oil dipped amid thin liquidity as investors weighed the fallout from a Russian ban on exports to buyers that adhere to a price cap. Iron ore surged to its highest since early August, while copper gained in New York as China’s rollback of pandemic curbs boosted prospects for commodities demand in 2023. — Additional reporting; Bloomberg, Reuters

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