World markets down as boost from inflation data fades

World markets were down by closing time on Thursday, reversing a rally earlier this week as inflation data fuelled hopes that central banks might be finished raising interest rates.

In Dublin the Iseq All Share did not perform as well as its European peers, with little on the upside among individual stocks.

Dublin

The Iseq All Share lost 1.47 per cent on Thursday, closing at 8,134.65. The Irish banks all saw losses on the day as AIB fell by 1.66 per cent to €4.15, Bank of Ireland lost 1.23 per cent to close at €8.51, and Permanent TSB closed at €1.77 after losing 1.12 per cent.

The Irish Stock Exchange’s two home-builders were in the red. Cairn Homes fell by 1.79 per cent to €1.21 and Glenveagh Properties lost 2.32 per cent to close at €1.01.

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Paddy Power parent company Flutter Entertainment lost 1.9 per cent to close at €142.10, while food company Kerry Group lost 0.54 per cent to close at 73.52, and budget airline Ryanair fell by 0.78 per cent to €17.28.

Building materials company Kingspan lost 1.25 per cent on the day, closing at €67.92, while packaging company Smurfit Kappa also fell, down 4.51 per cent to €31.32.

Among the few listed companies that saw gains on the day Origin Enterprises rose by 3.75 per cent after the agri-services group announced plans to buy back €20 million of its shares despite a slump in first-quarter revenues caused by the ongoing softening of feed and fertiliser prices.

Also on the upside, nutrition group Glanbia rose by 0.26 per cent to €15.39, mining company Kenmare Resources rose by 1.76 per cent to €4.62, and life sciences investment company Malin Corporation gained 7.28 per cent to close at €4.42.

London

The UK’s export-heavy FTSE 100 Index lost 1.01 per cent on Thursday, while the more domestically-focused FTSE Mid-Cap 250 Index was down 1.34 per cent.

Luxury group Burberry tumbled 11.15 per cent after the company said it would struggle to meet revenue targets as it has been hit by a global slowdown in luxury spending.

Specialist chocolatier Hotel Chocolat soared 160.79 per cent to a 1½ year high after agreeing to a £534 million (€611m) takeover offer from Mars.

Shares of supermarket chain Tesco gained 0.77 per cent after Goldman Sachs started coverage with a “buy” rating.

Europe

Europe’s benchmark index dropped on Thursday as the Stoxx 600 closed 0.72 per cent lower, reversing gains of 2.5 per cent over the previous three days. The German Dax Index gained 0.24 per cent, while the French Cac 40 fell by 0.57 per cent.

Throughout this week inflation data from the US and the UK reinforced hopes that their central banks were finished raising rates as investors shift focus to the euro zone’s inflation reading on Friday.

HelloFresh tanked 22.4 per cent to the bottom of the Stoxx 600 after the German meal-kit maker cut its annual core profit outlook and narrowed the revenue growth guidance.

On the flip side Embracer gained 3.18 per cent after the Swedish games developer posted a bigger-than-expected second-quarter operating profit.

Siemens gained 5.70 per cent after the trains-to-industrial software maker posted better-than-estimated fourth-quarter industrial profit.

Italy’s state-controlled defence and aerospace group Leonardo added 0.45 per cent on plans to sell a 6.3 per cent stake in its US subsidiary Leonardo DRS.

New York

Wall Street’s main indexes drifted lower, weighed down by a drop in shares of Cisco and Walmart following underwhelming forecasts.

Shares of Cisco Systems fell as the communications and networking firm cut its full-year revenue and profit forecasts on slowing demand for its networking equipment.

Walmart also dropped as the retail giant said that the US consumer continued to exert caution with their spending in the face of inflation, even as it raised its annual forecast for sales and profit.

Palo Alto Networks fell after the cybersecurity company forecast its second-quarter billings below market expectation due to inflationary pressures, while Macy’s shares climbed as the department store operator’s quarterly sales beat analysts’ estimates. – Additional reporting: Reuters