Global shares slip ahead of US Federal Reserve’s policy meeting

Global stocks fell and the benchmark US bond yield rose close to levels last seen in 2007 as a plunge in US homebuilding in August underscored the balancing act the nation’s Federal Reserve faces in signalling its outlook on interest rates this week.

Dublin

Euronext Dublin outperformed its international peers, finishing the day up marginally on the back of strong performances from some of its bigger names.

Drinks group C&C finished the day up 5 per cent even after telling investors its revenues would be lower in the first half of the year, but that operating profit is expected to be up to €31 million as it restored service levels following the implementation of a new tech system.

It was a good day also for the financial names, with Bank of Ireland and AIB up almost 3 per cent and 2 per cent respectively.

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Among the index’s biggest names, building materials giant CRH was flat on the day as it prepares to move its listing to New York next week.

Meanwhile, Paddy Power Betfair-parent Flutter Entertainment slumped 0.8 per cent, while box-maker Smurfit Kappa finished the day up just over 1 per cent.

Elsewhere budget airline Ryanair outperformed the travel and leisure sector as it traded up slightly by close of business.

London

The FTSE 100 moved 0.09 per cent higher during a jittery session as traders faced further concerns about inflation persistence.

Kingfisher shares finished down 28.8p at 206.8p after the DIY giant said profits dropped by a third following wet weather and low consumer confidence dampening sales in Europe. The B&Q owner cut its full-year earnings outlook as a result, telling investors it lowered its adjusted pretax profit expectations for the full year to around £590 million (€684m) from the previous guidance of £634 million.

Hargreaves Lansdown was among the FTSE 100′s top performers after the investment platform and services firm delivered strong profits in the face of “challenging” market conditions. It said pretax profits jumped over 50 per cent to £402.1 million in the 12 months to the end of June despite weaker new business. Shares in Hargreaves Lansdown rose by 37.6p to 802.6p at the close.

Online retail business Naked Wines saw shares go sour during the session after it cautioned that its future trading could be in doubt if a “combination” of factors affects its cash flow. It came as the London-listed firm swung to a £15 million pretax loss for the year to April 3rd, from a £2.9 million profit a year earlier. Shares fell 7.8p to 62.2p as a result.

Europe

It was a mixed bag on the Continent as Germany’s Dax index was 0.4 per cent lower for the day, while the Cac 40 closed up 0.08 per cent.

Elsewhere, the Stoxx Europe 600 rose 0.1 per cent, while the MSCI World index fell 0.1 per cent.

New York

Wall Street’s main indexes slipped ahead of the Federal Reserve’s policy meeting, with investors awaiting grocery delivery app Instacart’s Nasdaq debut to assess a potential recovery in the IPO market.

Starbucks lost 1.7 per cent after TD Cowen downgraded the coffee chain to “underperform”, while CVS Health gained 1.9 per cent after Evercore ISI upgraded the US pharmacy chain to “outperform” from “in line”.

Walt Disney lost 2.5 per cent as it nearly doubled its capital expenditure for the parks business to about $60 billion over the next 10 years.

At 9.50am eastern time the Dow Jones Industrial Average was down 0.15 per cent; the S&P 500 was down 0.2 per cent; and the Nasdaq Composite was down 0.41 per cent.

The S&P index recorded six new 52-week highs and four new lows, while the Nasdaq recorded 14 new highs and 103 new lows. – Additional reporting: Agencies