World stocks decline as data suggests cooling in US labour market

World stock indices declined on Tuesday with the S&P 500 down and treasury yields easing after data suggested a cooling in the US labour market.

Dublin

The ripple effects of the US data were felt on Euronext Dublin, which ended the day down 0.5 per cent. “There was a renewed sell-off in big banks in the US, which led the equity market lower after a four-day rally,” one trader noted.

Healthcare services group Uniphar and builder Cairn Homes were among the stocks to be dragged down, ending the day 2.3 per cent and 2 per cent weaker respectively.

On the upside, Bank of Ireland climbed 1.5 per cent, while titanium miner Kenmare Resources finished the day 1.3 per cent higher.

Vulnerable people stuck in the middle of impasse over enduring power of attorney

---

Sewage crisis: why this UK election is being fought on – and in – rivers and lakes

---

Hubristic Woodford was the orchestrator of his own downfall

---

Despite what people may think, taxes in Ireland are low compared to Europe

---

There were positive moves also in the travel and leisure sector as Hostelworld climbed 2.2 per cent and Dalata – the biggest hotel operator in the State – was up 1.2 per cent at close of business.

London

London’s stocks slipped back from recent highs as the pound reached a 10-month high against the dollar.

The internationally-focused FTSE 100, many of whose constituent companies will be exposed to fluctuations in the dollar, closed down 0.5 per cent, breaking a six-day streak of gains.

In company news, shares in over-50s specialist Saga tumbled after it revealed it took a £269 million goodwill impairment in its insurance business, pushing it deep into a loss. Shares fell by 16.5 per cent at close.

Elsewhere, DCC, the Irish fuel distribution-to-technology services group, finished the day off 0.64 per cent.

Rathbones announced it was merging with rival Investec Wealth and Investment UK in a move set to create the country’s “leading discretionary wealth manager”. The deal, worth about £839 million, will, they said, create new opportunities for customers and lead to cost savings and efficiencies from the overlap of the two firms. Shares in Rathbones were up by 1.8 per cent and shares in Investec were 1.6 per cent higher at close.

Private equity firm Apollo Management made what it said was its fifth and final proposal to buy engineering firm John Wood Group for £1.66 billion. Wood Group has rejected four bids from Apollo which it previously said were “unsolicited” and undervalue the group’s prospects. Shares in Wood Group dipped by 2.3 per cent.

Europe

It was a more positive session for stock markets elsewhere in Europe, with the German Dax increasing by 0.2 per cent and the French Cac edging up by 0.07 per cent.

The pan-European Stoxx 600 index rose 0.02 per cent while MSCI’s gauge of stocks across the globe shed 0.11 per cent.

New York

Wall Street’s main indices slipped as evidence of a cooling economy exacerbated worries of a recession with investor bets shifting in favour of a pause in the Federal Reserve’s interest rate hikes in May.

Sectors closely tied to the economy such as industrials, materials and energy were the top losers on the S&P 500.

Defensive stocks such as healthcare and utilities, seen as holding up better during an economic slowdown, were among the few big sectors in the green.

At 11.41am eastern time, the Dow Jones Industrial Average was down 0.64 per cent; the S&P 500 was down 0.55 per cent; and the Nasdaq Composite was down 0.45 per cent.

Among stocks, Virgin Orbit Holdings tanked 23.4 per cent after the satellite launch company filed for Chapter 11 bankruptcy on failing to secure long-term funding.

AMC Entertainment Holdings’ shares tumbled 22.3 per cent after the movie theatre chain said it had agreed to settle litigation and proceed with converting its preferred stock into common shares.

Shares of Digital World Acquisition fell 7.9 per cent after the Spac linked to former US president Donald Trump delayed the filing of its annual financial report. (Additional reporting: Agencies)