Global concerns over the possibility of the US Federal Reserve increasing interest rates stifled markets across the globe on Wednesday.
Wall Street futures dipped on Wednesday as US-Iran tensions cast fresh doubt over peace in the Middle East, marking a cautious start to the second half of the year, while investors around the world awaited commentary from Fed chair Kevin Warsh.
Dublin
The ISEQ all-share index was marginally down 0.19 per cent to 13,801.67 today, with most stocks maintaining their momentum from earlier in the week.
Kingspan was under pressure following 10 days of decline, but only noted a 1.5 per cent drop over the day.
READ MORE
Bank shares saw some movement, with AIB and Bank of Ireland fluctuating but both finished with little change.
Ryanair also saw a drop of 1.28 per cent but rallied towards close of business. The big winner was Kerry Group with shares up by 2.5 per cent to €82.35, as the group continued its good run.
London
The UK’s blue-chip FTSE 100 slipped on Wednesday, with healthcare and energy shares leading declines, as investors monitored the latest setback in the Middle East.
The internationally focused FTSE 100 index closed down 0.2 per cent, while the mid-cap FTSE 250 jumped 1.4 per cent to a one-week high.
Healthcare shares dropped 1.6 per cent, weighing on the blue-chip index, with heavyweights AstraZeneca and GSK down 1.7 per cent and 2.5 per cent respectively.
Of Irish interest, DCC fell by 80p, or 1.3 per cent, after its largest shareholder, Fidelity International, came out against the €6.63 billion takeover proposal from two US private-equity groups.
Aerospace and defence shares extended gains from the prior session when prime minister Keir Starmer pledged an extra £15 billion (€17.5 billion) of spending on defence. Babcock, BAE Systems and Rolls-Royce rose between 1.1 per cent and 5.2 per cent.
J Sainsbury added 3.4 per cent after Tuesday’s trading update.
Associated British Foods, parent company of Penneys, fell 3.2 per cent as it reported a continuing decline in comparable sales at fast fashion chain Primark in its third quarter and a deteriorating outlook at its sugar business.
At Primark, like-for-like sales were down 2.2 per cent in the quarter, an improvement on the 2.7 per cent drop reported in the first six months of the financial year and are 2.5 per cent lower in the year to date.
Europe
European shares slipped on Wednesday, after a strong finish to the second quarter, as investors assessed indications that US interest rates could stay higher for longer, and the progress of US-Iran peace talks.
The pan-European Stoxx 600 index closed 0.4 per cent lower after logging its strongest quarter since October 2020 in the previous session.
The Stoxx tech index pulled back 1.2 per cent after logging its strongest quarterly performance since late 2001 in the previous session, with valuations now at par with Wall Street rivals.
Chip equipment maker ASML dropped 4.6 per cent, while semiconductor stock Soitc slipped marginally.
AI equipment maker Schneider Electric lost 3.1 per cent after signing an agreement to acquire Cognite Holding, a privately held AI software and industrial data provider, for $3.1 billion in an all-cash deal.
Traders anticipate both the Fed and the European Central Bank lifting interest rates by at least 25 basis points later this year, LSEG-compiled data showed. While crude oil prices have fallen back to pre-Iran-war levels, concerns remain that inflation pressures will linger.
New York
On Wednesday morning the Nasdaq Composite slumped on rising expectations of Federal Reserve rate hikes this year, as US inflation is well above the Fed’s 2 per cent annual target.
Shutterstock plunged after calling off its planned merger with Getty Images. Meanwhile, Oklo shares jumped after the nuclear technology company said the US department of energy had approved the safety analysis for its Groves isotope test reactor. – Additional reporting: PA, Reuters
