Equities slide worldwide on supply chain woes and surging costs

Only banks and Greencore add value to share prices on Euronext Dublin

Shares slid worldwide on Tuesday as supply chain woes and surging costs hurt corporate earnings and slowed manufacturing output, while Treasury yields dipped as the weakness in equities revived a safe-haven bid for US government debt.


Euronext Dublin finished the day down 1.3 per cent on Tuesday, which was largely in line with its international peers.

With the exception of the Irish financial institutions, most stocks in Dublin were down on the day.

Bank of Ireland ended the day up 3.5 per cent after it was cleared to acquire €9 billion worth of loans from KBC Bank Ireland by the competition watchdog, subject to certain conditions being met. “That was probably the main driver of the day,” noted a trader.


Elsewhere, Permanent TSB and AIB were up 6 per cent 1.6 per cent respectively.

The other outperformer on the day was food group Greencore which finished the day up 3 per cent after posting interim results that showed revenues are back above pre-Covid levels.

The rest of the Irish players were largely in the red. The airline sector was weaker with Ryanair down 3 per cent, while its peers Wizz Air and Easyjet were each down 5 per cent.

Among the other big hitters, building materials company CRH was down 1 per cent, while Paddy Power Betfair owner Flutter Entertainment was down 3 per cent. Kerry Group ended the day down 2 per cent.


The FTSE 100 fell, tracking a sour global mood with energy stocks leading declines and shares of British utilities slumped after a media report fuelled speculation of a windfall tax.

The benchmark FTSE 100 fell 0.4 per cent with oil majors Shell and BP among top drags, while the midcap FTSE 250 dipped 1.5 per cent.

UK power generating companies Drax, Centrica and SSE plunged between 13.8 per cent and 7.9 per cent. The wider utilities index dropped 0.6 per cent.

Advertising group WPP tumbled 9.3 per cent and broadcaster ITV dropped 4.9 per cent.

A business survey showed Britain’s economic momentum slowed much more than expected this month, adding to recession worries as inflation pressures mount.

Royal Mail slid 5.5 per cent after Peel Hunt downgraded the stock to “sell” from “buy”, saying it now assumes no dividends or buybacks.

Restaurant Group slipped 2.3 per cent despite saying strong sales at Wagamama and its Frankie & Benny’s chain of restaurants were helping offset the impact of inflation on expenses.


European shares ended lower, tracking declines in global stock markets with business expansion data for May renewing investor concerns over slowing economic growth and monetary policy tightening.

The pan-European Stoxx 60 index closed 1.1 per cent down, giving back almost all of Monday’s gains. It is now down more than 12 per cent from this year’s highs hit in early January.

The French index, packed with luxury stocks, slumped 1.7 per cent, the top decliner among regional

Tele2 plunged 7.9 per cent after investment company Kinnevik sold a 7.2 per cent stake in the telecoms operator.

Barclays rose 3.2 per cent on starting a suspended £1 billion share buyback programme.


Wall Street’s main indexes plunged, with the tech-heavy Nasdaq leading the slump, as economic data and bleak company forecasts added to nerves about slowing growth amid decades-high inflation.

Snap plummeted 40.6 per cent, dragging down several social media and internet stocks, after the Snapchat owner slashed its second-quarter earnings forecast and said the economy had worsened faster than expected in the last month. The stock was set for its worst single-day drop.

Twitter, Google-owner Alphabet, Meta Platforms and Pinterest, which rely heavily on advertising revenue, fell between 4.1 per cent and 24.3 per cent. Additional reporting – Reuters

Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter