Global stocks fall following drop in US consumer confidence

Stocks on global indices were lower on Tuesday following a drop in June US consumer confidence, while oil prices gained for a third day.

Dublin

Euronext Dublin was dragged down 1.2 per cent as some of its heavier hitters suffered losses.

AIB finished the day down 3 per cent after the Government successfully placed a 5 per cent stake on the stock market after Dublin trading closed on Monday.

The share sale raised €304.8 million, with the shares on offer priced at €2.28 each, representing a 6.5 per cent discount to Monday’s closing price.

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The banks generally benefited from data that showed mortgage approval activity increased in volume terms by 14.3 per cent year on year and in value terms by 25.3 per cent over the same period. Bank of Ireland finished the day up 1 per cent.

Elsewhere, DCC, the fuel distribution-to-technology services group, was up more than 2 per cent, while Ryanair was down more than 2 per cent, and Paddy Power Betfair parent Flutter Entertainment was down 2.5 per cent.

London

Commodity and defence firms led the gains as the Ftse 100 pushed higher for the third consecutive day.

The Ftse 100 ended the day up 65.09 points, or 0.9 per cent. Sentiment was supported by China’s decision to reduce the length of mandatory quarantine for inbound travellers, in the biggest relaxation so far in its zero-Covid policy.

London’s oil majors had strong sessions amid hopes the relaxation would boost travel and trade.

“Even though the country still has measures in place, the move is interpreted as a sign that things are moving in the right direction, which has lifted sentiment across the board as stocks, oils and industrial metals are higher,” said David Madden, market analyst at Equiti Capital.

Sterling made slight gains as the dollar stalled due to the unsettled economic backdrop. The pound was up 0.03 per cent against the dollar at 1.220, was down 0.13 per cent against the euro at 1.158.

The biggest risers in the Ftse 100 were Rolls-Royce, up 5.33p at 87.14p; Prudential, up 43.5p at 1,052.5p; BT, up 7.35p at 192.3p; BAE Systems, up 28p at 826.6p; and Harbour Energy, up 11.9p at 375p.

The biggest fallers of the day were Severn Trent, down 111p at 2,742p; Aveva Group, down 70p at 2,379p; Flutter Entertainment, down 224p at 8,506p; Entain, down 31.5p at 1,304p; and Halma, down 40p at 1,996p.

Europe

Traders were positive in Europe, as goodwill around China helped the German Dax advance by 0.35 per cent by the end of the session, while the French Cac lifted by 0.68 per cent.

The euro weakened after the European Central Bank president offered no fresh insight into the central bank’s policy outlook.

The pan-European Stoxx 600 index rose 0.23 per cent and MSCI’s gauge of stocks across the globe shed 0.44 per cent.

New York

Stocks pushed lower after data showed Americans growing more downbeat about the outlook for the economy at a time when the Federal Reserve is aggressively trying to tame runaway inflation.

Megacaps such as Amazon and Tesla weighed heavily on the market, with the tech-heavy Nasdaq 100 down 2 per cent. An earlier rally in the S&P 500 was driven by optimism about China cutting its quarantine period for travellers and giant Wall Street banks boosting their dividends.

US consumer confidence sank to a 16-month low, while home-price growth decelerated for the first time since 2021.

“We are at an inflection point in the economy, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “If we are able to avoid a recession, then the stock market is fairly valued. However, if we do go into recession, then we would expect the lows for the year haven’t been hit yet.”

Still, analysts continue to be bullish about corporate earnings, with net margin estimates for S&P 500 companies remaining at a record high.