Global share prices slide from record highs after inflation data

Global share prices slid from record highs on Tuesday after US inflation rose by the most in 13 years in June, driving the dollar up, the yield on benchmark US government debt initially down, and stocks on Wall Street to trade near break-even.

DUBLIN

Euronext Dublin ended the day down 0.5 per cent as the banks dragged the index on fresh inflation fears in the United States.

"The markets didn't react too much," noted a trader. "All in all, it was a fairly flat day." The main stocks to suffer were banks, with AIB and Bank of Ireland down 3 per cent and 2 per cent respectively.

In the tourism and hospitality sector, Ryanair was down 1.6 per cent, while Dalata, the biggest hotel operator in the State, was down about 2 per cent as it gave back some of the gains picked up during a reasonably strong few days.

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Elsewhere, Paddy Power Betfair owner Flutter Entertainment finished the day down 0.8 per cent, while food group Glanbia and builder Cairn Homes fared a little better than recent days. However, most stocks spent the day "treading water", according to one trader.

LONDON

The Ftse 100 ended on a quiet note amid weakness in travel and energy stocks as a jump in coronavirus infections raised worries about reopenings, while banks gave up their session gains to end lower.

Banks ended 0.9 per cent lower after initially adding over 2 per cent, weighing on the Ftse 100, after the Bank of England scrapped pandemic-era curbs on dividends for top lenders with immediate effect.

The blue-chip Ftse 100 index was flat, with financial services company Natwest Group being the top loser, while energy major BP posed the top drag on the index. Travel stocks dropped 1 per cent.

Among stocks, UK commercial property firm British Land Co fell 1.6 per cent after it said it did not expect to grant further rent concessions to its tenants this quarter as the easing of coronavirus restrictions had boosted its trading.

BP dropped 1.1 per cent after it said it would buy the entire ownership of its Thorntons joint venture to expand its presence in the US fuels and convenience retail business.

EUROPE

European stocks eased marginally from all-time highs on Tuesday, as investors sold economically sensitive sectors following hotter-than-expected US inflation, but some upbeat earnings capped losses.

The pan-European Stoxx 600 index ended flat after hitting a record high in early trading.

Banks, auto and parts and oil and gas sectors were among the biggest decliners, down 0.5-1.2 per cent, while gains in some defensive stocks and technology shares countered losses.

Among individual stocks, Finnish telecom equipment maker Nokia jumped 8 per cent after it said it planned to raise its full-year outlook.

Swiss watchmaker Swatch Group rose 0.9 per cent as it returned to profit in the first six months of 2021 and its sales jumped more than 50 per cent.

Bumper earnings from major US banks JPMorgan and Goldman Sachs also helped sentiment.

Among decliners, Frankfurt-listed shares of genetic testing company Qiagen NV dropped 4.3 per cent after it lowered its outlook on weaker demand for Covid-19 tests, while German drug packager Gerresheimer fell nearly 9 per cent.

NEW YORK

The S&P 500 and the Nasdaq scaled new peaks, helped by a rise in mega-cap stocks and a positive start to the earnings season.

Only four of the 11 major S&P 500 sector indexes were trading higher, with the technology sector rising 1.1 per cent to also hit a new peak, supported by heavyweights including Apple and Microsoft.

Economy-linked energy, financials and materials sectors were the biggest decliners, falling more than 1 per cent each.

Rate-sensitive banks fell 2 per cent even as JPMorgan Chase & Co and Goldman Sachs Group reported higher-than-expected quarterly earnings.

PepsiCo gained 2.6 per cent after raising its full-year earnings forecast, betting on accelerating demand as Covid-19 restrictions continue easing.

Boeing fell 3.3 per cent after the Federal Aviation Administration said late on Monday some undelivered 787 Dreamliners had a new manufacturing quality issue.