Global shares declined on Wednesday, as hawkish commentary and hotter-than-expected economic data dampened investor hopes of interest rate cuts any time soon.
While Euronext Dublin logged an overall loss, the Irish market performed notably better than European peers.
Dublin
Euronext Dublin lost 0.25 per cent on Wednesday, to close at 8,469.85.
On a mixed day for Ireland’s biggest banks, AIB gained 0.57 per cent to close at €3.87, while Bank of Ireland lost 2.17 per cent to close at €7.92 and Permanent TSB fell by 0.90 per cent to €1.65.
Homebuilder Cairn Homes gained 0.57 per cent to close at €1.42, while peer Glenveagh Properties remained flat at €1.21. Building materials company Kingspan fell by 1.40 per cent to €73.00.
Paddy Power parent company Flutter Entertainment fell by 0.10 per cent to close at €153.90 on Wednesday evening, in advance of the release of a fourth quarter trading update on Thursday morning.
Ryanair gained 0.64 per cent to €18.10, while packaging company Smurfit Kappa lost 0.74 per cent to close at €34.78.
Food company Kerry Group fell by 0.16 per cent to €76.92, while peer Glanbia gained 0.90 per cent to €15.73.
London
The UK’s export-heavy FTSE 100 Index fell by 1.48 per cent on Wednesday to close at 7,446.29, while the more domestically focused FTSE Mid-Cap 250 Index fell by 1.71 per cent to 18,864.37.
Stronger-than-expected inflation data tempered investor expectations over sharp interest rate cuts this year, as consumer price inflation rose to 4 per cent in December – above economists’ estimates of a 3.8 per cent increase.
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888 Holdings tumbled by more than 14 per cent during the day on Wednesday as the bookmaker forecast its 2024 profit to be at the lower end of market expectations, as its heavy investments in artificial intelligence and other automation programmes offset its cost-saving measures. By close, 888 Holdings had recovered to a 1.54 per cent loss.
Energy and mining giants dipped on the back of weaker commodity prices after data showed China’s economy grew 5.2 per cent in 2023, slightly more than the official target, but the recovery was far shakier than many analysts had expected. Shell lost 2.34 per cent, while Glencore closed down 4.43 per cent.
Europe
European shares extended their previous session’s decline as more hawkish commentary from European Central Bank (ECB) officials also dampened rate-cut hopes.
The pan-European STOXX 600 Index fell by 1.13 per cent on Wednesday to close at 467.70. The French CAC 40 Index was down 1.07 per cent to 7,318.69, while the German DAX Index lost 0.84 per cent to close at 16,431.69.
In the latest of remarks from policymakers, ECB president Christine Lagarde said the central bank is on track to get inflation back to its 2 per cent target, but that victory had not yet been won, while Dutch central bank chief Klass Knot said any rate change was unlikely in the first half of 2024.
Worldline fell 0.61 per cent, after Reuters reported the payments group was reviewing options to reassure shareholders and avoid a hostile takeover.
Telecom Italia rose 0.88 per cent after the Italian government gave the go-ahead for the sale of its fixed line network to US fund KKR.
New York
Wall Street’s main indexes declined on Wednesday, as investors tempered rate cut expectations after stronger-than-expected economic data.
December retail sales data showed retailers offering discounts and increased motor-vehicle purchases aided a higher-than-expected rise in US retail sales, keeping the economy on a solid footing in 2024.
Tesla fell after the electric-vehicle maker slashed the prices of its Model Y cars in Germany, a week after reducing prices for some China models.
Morgan Stanley declined on brokerage rating downgrades after Tuesday’s weak fourth-quarter earnings. Other lenders such as Bank of United States and Citigroup were also down.
Spirit Airlines slid following a plunge in the previous session after a US judge blocked JetBlue from acquiring the carrier. Meanwhile, Boeing gained after the Federal Aviation Administration said inspections of an initial group of 737 MAX 9 aircraft had been completed. – Additional reporting Reuters
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