Global equities retreat from record highs over Delta concerns

Global equities retreated from record highs on Tuesday, as mounting worries over the slowing pace of economic recovery and the impact of the Covid-19 Delta variant overtook investors’ hopes the US Federal Reserve will delay tapering.

Dublin

Euronext Dublin was flat on Tuesday, but slightly outperformed its major international peers.

Ryanair was down about 2 per cent following news on Monday that talks with Boeing to purchase a batch of Max 10 aircraft had collapsed without agreement on pricing. However, an analyst noted that Ryanair's performance was "in line with the sector".

There was better news for insulation specialist Kingspan, which ended the day up 2 per cent. In the same sector, building materials company CRH – one of the biggest players on the exchange – was down 75 basis points.

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Elsewhere, there was continued momentum for Glenveagh Properties which was up 1.5 per cent, while packaging company Smurfit Kappa was up 1 per cent. In finance, Bank of Ireland and AIB were each down 1 per cent on the day, while FBD was up 3.5 per cent, albeit on low volume.

London

The FTSE 100 index ended lower, weighed down by healthcare stocks and brokerages, while DS Smith jumped to the top of the index after an upbeat trading update.

The blue-chip index fell 0.5 per cent and marked its worst session in nearly three weeks, as healthcare weighed with drugmakers AstraZeneca and GlaxoSmithKline among top drags.

Investment banking and brokerage services providers shed 1 per cent after TP ICAP Group reported a lower half-year profit. Shares of the world’s largest inter-dealer broker slipped 10.7 per cent.

DS Smith jumped 2.8 per cent to the top of the index as JP Morgan raised its price target on the cardboard maker's stock after it said trading continued to progress well in line with the trends.

Among individual stocks, 888 fell 1.8 per cent after the British gambling group said it was in advanced talks with Caesars Entertainment for a possible acquisition of the international operations of the US company's William Hill business.

Europe

European stocks fell as investors assessed how soon pandemic stimulus could potentially be withdrawn and the effects of rising inflation.

The Stoxx Europe 600 Index slipped 0.5 per cent in London, weighed down most by chemicals and utilities shares.

Luxury stocks outperformed with Switzerland’s Swatch Group AG and Gucci-owner Kering SA gaining as Hong Kong moves toward reopening the border with China. Basic resources shares also climbed as iron ore futures rebounded.

European equities are hovering near a record high reached mid-August on the back of strong corporate earnings and economic growth potential. The focus has now shifted to the risks of inflation and monetary policy, with investors awaiting the European Central Bank meeting on Thursday for clues on how soon it will move dial down emergency stimulus.

New York

The Dow Jones and S&P 500 fell on Tuesday, as worries over the slowing pace of economic recovery overshadowed hopes that the Federal Reserve would maintain its accommodative stance a little longer after a soft US payrolls report.

Amgen and Merck & Co fell about 2.4 per cent each as the drugmakers dragged down the Dow Jones index, after Morgan Stanley cut its rating on the stocks to "equal-weight" from "overweight".

Nine out of eleven sub-indexes traded lower with economy-sensitive sectors like industrials, real estate and materials leading declines.

The tech-heavy Nasdaq, however, hit a record high before losing steam, as a sudden jump in benchmark bond yields, which were at their highest since July, weighed on the sector that generally performs better in a low-interest environment.

Boeing dropped 2.6 per cent after the collapse of the Ryanair talks. Match Group shares jumped 6.5 per cent after the S&P Dow Jones Indices said on Friday the Tinder parent will join the benchmark index. – Additional reporting Agencies