Markets fret over global economy and fresh Covid outbreaks

Stock markets have begun the week with fresh worries about the global economy, after new outbreaks of the fast-spreading Omicron subvariant in several Chinese cities.

Dublin

Euronext Dublin was down 1.8 per cent on a choppy day for the market as investors grew concerned about soaring inflation.

Among the construction names, insulation specialist Kingspan finished the day down 4 per cent, while Woodie’s DIY parent Grafton Group was off 0.5 per cent.

Building materials giant CRH was down 70 basis points after it announced the completion of its acquisition of US residential fencing and railing company Barrette Outdoor Living for $1.9 billion (€1.87 billion).

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Box maker Smurfit Kappa underperformed its peers as it ended the day 2.5 per cent weaker.

But that was still better than Paddy Power Betfair parent Flutter Entertainment which gave up 4.5 per cent. On the upside, among the food names, Glanbia and Kerry Group both ended the day with green on the board.

London

Shares in London tread water as some of the UK’s biggest energy companies offset a poor day for miners. The mining sector was hit by further worries in China, where new Covid-19 restrictions could affect about 30 million people. By the end of the day, the Ftse 100 had gained just 0.35 points.

Antofagasta, Anglo American and Fresnillo all dropped, while gambling companies and Aer Lingus and BA owner IAG also struggled. Shares in Wizz Air also tumbled, down 3.7 per cent, after it revealed flights would be cut this summer. The London-listed airline said problems at airports had forced it to cut capacity by another 5 per cent — helping it to reduce cancellations and delays. EasyJet and Ryanair shares also closed the day down.

The biggest risers on the Ftse 100 were Centrica, up 2.9p to 82.98p; SSE, up 59p to 1,752.5p; Compass Group, up 37p to 1,797.75p; Severn Trent, up 56p to 2,792.5p; and United Utilities, up 18p to 1,031p.

The biggest fallers on the Ftse 100 were IAG, down 6.4p to 103.68p; Flutter Entertainment, down 370p to 7,752p; Antofagasta, down 46p to 1,067p; Ocado, down 31.4p to 835.6p; and Anglo American, down 100p to 2,724.5p.

Europe

European stocks dropped as traders braced for a crucial earnings season amid concerns about more Covid curbs in China as cases rise again.

The Dax in Germany gave back 1.4 per cent of its value, while Paris’s Cac 40 dropped 0.6 per cent.

The Stoxx Europe 600 index fell 0.5 per cent by the close in London, trimming an earlier slump of 1.5 per cent. The declines followed three consecutive days of gains, with automakers, travel and leisure, and miners leading the retreat. Defensive sectors such as healthcare and utilities outperformed.

Meanwhile on Monday, luxury stocks, including Louis Vuitton-owner LVMH SE weakened, as the China Covid outbreak spurred demand concerns. Uniper fell as much as 20 per cent to a record low, extending a recent plunge.

New York

US stock indices slid ahead of an earnings season that is set to kick off in earnest this week amid concerns of weaker corporate profit due to the impact of surging inflation.

The Nasdaq was set to break its five-day winning streak, weighed down by sharp declines in heavyweights Apple, Microsoft and Amazon in early trading.

The Dow Jones Industrial Average was down 0.52 per cent; the S&P 500 was down 1.1 per cent; and the Nasdaq Composite was down 1.9 per cent.

Shares of Twitter fell 6.5 per cent after Elon Musk, chief executive of Tesla, said he was terminating his deal to buy the social media company.

US casino operators Las Vegas Sands, Wynn Resorts and Melco Resorts were down 7.8-10.3 per cent after Macau shut all its casinos for the first time in more than two years in a bid to contain the spread of Covid-19.