Global stocks slumped as investor debate shifts toward how long the Federal Reserve and central banks will keep interest rates elevated.
DUBLIN
Euronext Dublin was down 0.5 per cent on what was a quiet day of trading with volumes down by about a quarter compared with the past month.
Among the main movers, home builder Glenveagh Properties finished the day down 3.6 per cent, albeit on relatively light volumes.
Explorer Kenmare Resources traded up 1.6 per cent after it posted results showing earnings before interest, tax, depreciation and amortisation rose 6 per cent to $110.4 million (€100.7 million) for the first half, with profit after tax rising 8 per cent to $67.8 million.
Challenging times ahead for Irish Stock Exchange as big companies look to the US
The company said it planned to increase its interim dividend by 59 per cent to 17.5 US cents per share, in line with Kenmare’s policy to maintain dividend payments of about $50 million annually. A trader said the news was “well received” by investors.
Elsewhere, energy group Greencoat Renewables was down 1 per cent at close of business, while Irish Ferries parent Irish Continental Group traded up 3.7 per cent. “It had a very low close on Monday so it make back some of that ground,” a trader noted.
“The real theme across the market at the moment is rates and how long they’re going to stay high for,” he added.
LONDON
UK stock markets slumped as worries about the Chinese economy weighed heavy and new wage UK data stoked fears over future interest rate rises.
London’s FTSE 100 plunged by about 1.7 per cent during the day, reaching lows of more than a month as all but a handful stocks on the blue-chip index saw losses. Miners and finance giants acted as the biggest drag on the index.
In company news, shares in Marks & Spencer surged after the upmarket supermarket told investors it will deliver higher profits for the year.
The high-street business said it has increased market share in both its clothing and homeware and food divisions in the past 19 months and that it had sold more stock at full price.
Investors were in good spirits after the update and its share price moved 8.2 per cent higher.
Shares in Legal & General slipped despite the insurer beating profit forecasts after being bolstered by a strong performance for its retirement division.
But the group still reported a dip in earnings compared to the previous year. Its share price closed 3 per cent lower.
EUROPE
European equities slipped amid light trading in what was a disappointing session for stocks which notched up substantial losses.
Germany’s Dax lost 0.86 per cent and France’s Cac 40 was down 1.1 per cent at close. Elsewhere, the Stoxx Europe 600 fell 0.9 per cent, while the MSCI World index fell 0.6 per cent.
European stocks have given back part of the year’s gains this month as concerns about China’s economic woes, especially in the real estate market, and rates peaking higher than expected take hold.
NEW YORK
Wall Street’s main indexes fell after stronger-than-expected retail sales data stoked worries interest rates could stay higher for longer, while US big banks dropped on a report that Fitch could downgrade some lenders.
Shares of regional lenders PacWest Bancorp, Zions Bancorporation and Western Alliance Bank fell between 3 per cent and 6.3 per cent after the Federal Deposit Insurance Corp’s latest regulatory overhaul proposal.
Technology stocks fared better, thanks to a 2.2 per cent rise in shares of Nvidia after UBS and Wells Fargo lifted their price targets on the stock.
US-listed shares of Chinese companies JD. Com, Alibaba Group and Bilibili slid between 2.2 per cent and 4.6 per cent after another round of disappointing economic data from China which prompted Beijing to cut key policy rates.
At 17.04pm Irish time, the Dow Jones Industrial Average was down 0.73 per cent; the S&P 500 was down 0.67 per cent; and the Nasdaq Composite was down 0.52 per cent. — Additional reporting: Agencies
