European markets slip on interest rate concerns

Markets slipped across Europe on Friday, with investors spooked by Bank of England governor Andrew Bailey’s remarks that monetary policy would remain tight.

DUBLIN

Medtech group Healthbeacon’s suspension was the day’s main talking point, dealers said. The company’s value has collapsed 95 per cent since a September sales warning. Otherwise traders noted that the Dublin market underperformed others on Friday, even though there was little other news behind moves in any traded stocks.

Housebuilder Cairn Homes shed 3.75 per cent to €1.13, while its rival Glenveagh shed 3.16 per cent to 95 cent.

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Ryanair shares slid 3.37 per cent on a day when investors swerved airline stocks across Europe.

Among other leading stocks insulation and building materials specialist Kingspan was 2.97 per cent down at €67.94. Paddy Power-owner Flutter Entertainment shed 2.99 per cent to €152.50.

LONDON

Bank of England governor Andrew Bailey said on Friday that future interest rate decisions by Britain’s central bank would remain tight after officials voted by narrow margin to leave borrowing costs on hold last month.

Iranian hints at support for the Hamas terror group in its conflict with Israel sparked fears of oil production sanctions against the Middle Eastern country, adding around $1 a barrel to crude prices. Heavyweight oil and gas shares rose as a consequence. Anglo Dutch group Shell climbed 1.53 per cent to 2,722 pence. BP surged 2.16 per cent to 547.7p.

EasyJet slumped 3.72 per cent to 391.2p on a tough day for airlines. The British carrier reported higher profits on the back of rising fares earlier this week. However, traders suggested that rising oil prices had once again made investors wary of air travel.

Aer Lingus-owner International Consolidated Airlines Group shed 2.4 per cent to 144.1p. Eastern Europe-focused low-cost carrier Wizz Air tumbled 6 per cent to 1,656.5p.

EUROPE

European stocks slipped after US inflation data fuelled concerns about interest rates staying higher for longer, while weak inflation data from China added to jitters about the global economy.

Air France-KLM was 1.59 per cent off at €11.90, following a general trend for airlines. Germany’s Lufthansa shed 0.4 per cent to close at €7.11.

Sartorius fell 11 per cent to €229 after the Franco-German lab supplies-maker lowered its full-year forecast for sales and adjusted earnings margin on the back of lower volume expectations and product mix effects.

US

US stocks rose as some of its largest banks kicked off the earnings season with solid results. Treasuries climbed with oil amid signs Israel is preparing for a ground invasion of Gaza.

The S&P 500 pushed toward a back-to-back weekly gain. The KBW Bank Index added 1.3 per cent. JPMorgan Chase jumped 5 per cent on another quarter of record net interest income and a bullish forecast. Wells Fargo advanced 4 per cent as it beat analysts’ expectations for net interest income and raised its guidance. Citigroup climbed 3.5 per cent as its rates and currencies traders posted their best third-quarter in at least eight years. – Additional reporting: Bloomberg, Reuters