Global markets sank on Thursday as worries about the enormous cost of the artificial intelligence (AI) boom deepened.
Dublin
Euronext Dublin finished the day down 2.3 per cent in what was described as a “market rout” by a trader. “There was red across the board, and we definitely underperformed,” he said.
The standout underperformers were the banks as AIB and Bank of Ireland finished down 4.5 per cent and 5.5 per cent respectively.
Most of the downward moves for the financial names came in the afternoon following the European Central Bank’s decision to keep interest rates unchanged, but the trader also noted they have had a strong rally of late.
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The airline sector was hit across the board, as Ryanair sank 2 per cent. Another big name on the index, food giant Kerry Group, was not as badly affected but still gave up 45 basis points.
Among the home builders, Cairn Homes and Glenveagh Properties finished down 0.5 per cent and 1.5 per cent respectively.
Cavan-based insulation specialist Kingspan, which is one of the largest companies on the index, was an outlier in that it finished the day up 90 basis points.
London
Stocks in London slumped, tracking US and European counterparts, as investors weighed rate calls in Europe and the UK and as merger talks between Glencore and Rio Tinto collapsed once more.
The FTSE 100 index closed down 0.9 per cent, while the FTSE 250 ended down 1 per cent, and the Aim All-Share fell 1.4 per cent.
The Bank of England left the bank rate unchanged at 3.75 per cent on Thursday, by a slim five-to-four majority.
Data providers and software stocks were among the best performers after the recent heavy falls.
London Stock Exchange gained 5.5 per cent after strong results from majority-owned TradeWeb.
RBC Capital Markets said results from TradeWeb showed revenue 1 per cent in advance of consensus and earnings per share 4 per cent ahead.
Late drama in London saw merger talks between Rio Tinto and Glencore collapse. Talks held between the two firms in late 2024 previously collapsed. Glencore sank 7.5 per cent and Rio Tinto eased 1 per cent.
Elsewhere on the FTSE 100, Vodafone fell 4.6 per cent after third quarter results missed forecast due to weaker than expected organic revenue growth in its German business. Analysts also pointed out the telco’s share price has been a strong performer in 2026 so far.
Entain gave back 6.2 per cent after performing well on Wednesday on the back of strong trading at 50 per cent owned joint venture BetMGM, while the lower gold price and a downgrade from Berenberg dragged Fresnillo 6.3 per cent lower.
Europe
Euro-zone bond yields were broadly steady against a backdrop of fragile global markets.
In equity markets, the Cac 40 in Paris closed down 0.3 per cent, while the Dax 40 in Frankfurt fell 0.5 per cent. The Stoxx Europe 600 fell 1 per cent, while the MSCI World Index fell 0.9 per cent.
Euro-zone bloc-wide inflation data released Wednesday showed that headline inflation eased to 1.7 per cent in January. Even so, analysts say recent euro strength has stoked concerns about potential deflationary pressures growing.
New York
The S&P 500 dropped to an over two-week low and the Nasdaq sank to its lowest in more than two months, as the AI theme came under renewed pressure after Alphabet’s spending plans and Qualcomm’s downbeat forecast rattled investors.
Shares of Alphabet fell 4.2 per cent after the Google parent said it would double its capital expenditure this year, signalling another aggressive push to strengthen its position in the AI race.
Qualcomm slid 8.2 per cent after forecasting second-quarter revenue and profit below estimates.
The pressure spread across tech mega-caps, with Microsoft and Tesla down 3.4 per cent and 3.7 per cent. – Additional reporting: agencies
