Global stocks fall on fears of higher interest rates for longer

Equities around the world were lower on Tuesday in a choppy trading session as Treasury yields stayed close to 2007 levels while fears of higher for longer interest rates ate into appetites for riskier assets.

Dublin

Euronext Dublin finished flat on the day as global consumer confidence and interest rate environment dragged on the index, according to traders.

Paddy Power Betfair parent Flutter Entertainment was one of the better performers as it finished the day up 0.6 per cent. The gaming and gambling giant is now one of the biggest hitters in Dublin following the exit of building materials giant CRH last week.

Irish agri-services group Origin Enterprises rose 3.5 per cent after it said revenue rose almost 5 per cent to €2.5 billion last year in declining commodity markets.

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Among the food names, Glanbia came under some pressure throughout the day before finishing down 1.4 per cent. Dairy giant Kerry Group, meanwhile, closed up 0.6 per cent.

It was a mixed bag for the airlines, as Ryanair dropped 0.6 per cent on the day. Among the financial names, AIB was down 0.6 per cent at close of business.

London

The FTSE 100 outperformed the rest of Europe to just finish in positive territory, moving up 0.02 per cent.

In company news, shares in online fashion retailer Asos slipped as it warned earnings will be at the lower end of its guidance after wet weather in July and August knocked demand for clothes.

The group said UK sales tumbled 16 per cent in its final quarter, with poor weather compounding woes amid a worsening UK clothing market. Shares in Asos finished down 5.8p at 381p on Tuesday.

British Land was higher at the close despite telling shareholders that Facebook owner Meta has paid it £149 million (€171 million) to surrender the lease on one of its London office buildings.

British Land said the move would reduce its earnings per share by 0.6 per cent over the six months to next March but held its full-year earnings guidance. It saw shares climb by 10.7p to 326.8p.

Elsewhere, Videndum shares tumbled heavily after it told investors its revenue dropped almost a quarter over the first half of the year after it was knocked by the writers and actors strikes in Hollywood.

The firm, which makes hardware and software for the entertainment industry, saw shares drop 203p to 347p as it also swung to a £50 million loss.

Europe

Across the Channel, Germany’s Dax index was 1 per cent lower for the day while the Cac 40 in France closed down 0.67 per cent.

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been another negative session for European markets with the Dax pushing ever closer to six-month lows.”

The pan-European Stoxx 600 index lost 0.56 per cent and MSCI’s gauge of stocks across the globe shed 1.01 per cent.

New York

Wall Street’s main indexes dropped as investors continued to grapple with the prospects of a prolonged restrictive monetary policy by the Federal Reserve and its subsequent impact on the economy.

Megacap growth stocks including Apple, Microsoft, Meta Platforms, Amazon.com and Tesla lost between 0.8 per cent and 1.2 per cent.

All 11 S&P 500 sectors were trading lower, with property, utilities and information technology the worst hit, down between 0.8 per cent and 1.3 per cent.

At 9.35am eastern time, the Dow Jones Industrial Average was down 0.42 per cent; the S&P 500 was down 0.61 per cent; and the Nasdaq Composite was down 0.68 per cent.

All three major US stock indexes are set to log quarterly declines for the first time this year heading into the last trading days of September.

Among individual stocks, Immunovant surged 77 per cent after the drug developer said its antibody treatment had succeeded in an early-stage trial. Roivant Sciences, the company’s largest shareholder as per LSEG data, was up 15.2 per cent. – Additional reporting: agencies