Stocks tread water ahead of US inflation data

European stocks fell on Thursday as traders were cautious in advance of key inflation data and a fall in semiconductor stocks.

Inflation fears also resurfaced amid a surprise pickup in the pace of consumer price increases in Australia and Canada.

US treasury yields, meanwhile, declined slightly after a series of economic reports, which mostly suggested ebbing economic momentum, supporting the view the Federal Reserve could soon begin cutting interest rates.

Dublin

Matching Wednesday’s decline, the Iseq All-Share index dipped 0.8 per cent on Thursday as Irish banking stocks slid.

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Shares in AIB fell 1.8 per cent €4.95 per share after the Government decided to put another 5 per cent block of shares in AIB on the market, in a move that will see its holding fall close to the 25 per cent level. Bank of Ireland, meanwhile, fell by 2.7 per cent to €9.67 per share.

Smurfit Kappa shares slipped 0.7 per cent to €41.49 after the packaging groups secured US regulatory approval for its combination with rival cardboard-box maker WestRock. The $25 billion-plus (€23.4 billion) tie-up, being carried out by a so-called scheme of arrangement, requires Irish High Court approval at a hearing due to take place on Tuesday.

Rates-sensitive property stocks remained mixed with Cairn Homes ahead on the session by 1.4 per cent to €1.63 per share while Glenveagh dipped 0.6 per cent to €1.29 per share.

Meanwhile, Ryanair slipped 0.6 per cent to €16.42.

London

The UK’s main stock indices were mixed with the benchmark FTSE 100 down by 0.5 per cent while the mid-cap FTSE 250 ahead by 0.2 per cent.

Among individual stocks, accessories retailer Burberry suffered the biggest decline, slipping 6.4 per cent as the company traded without entitlement to its latest dividend payouts. It followed a report from Deutsche Bank analysts, cutting the group’s its sales forecast on weaker data from China and the US.

Pharma stocks declined across the board with AstraZeneca down 1.8 per cent and GSK down 4.6 per cent after US regulator’s held off on recommending the use of GSK’s respiratory syncytial virus vaccines for adults under the age of 60.

Aer Lingus owner IAG, meanwhile, fell 1.8 per cent after a breakdown in talks between pilots and management at the carrier.

Europe

The blue-chip Stoxx 50 index fell by 0.3 per cent in trading on Thursday with the pan-European Stoxx 600 down by 0.4 per cent.

Inflation anxieties surfaced once more after a surprise jump in inflation data in Australia on Wednesday and in Canada on Tuesday.

French stocks took the brunt of the downturn in sentiment in advance of the first round of France’s legislative elections on Sunday. L’Oreal, down 3.4 per cent, and Jameson owner Pernod Ricard, down more than 2 per cent, were among the biggest individual movers on the day with French luxury stables LVMH and EssilorLuxottica also declining.

Gucci owner Kering bucked the trend, adding more than 5 per cent after Bank of United States upgraded its rating of the stock to buy.

New York

Wall Street’s main stock indices trod water on Thursday as Traders awaited Friday’s US personal consumption expenditures data, the Federal Reserve’s preferred inflation measure.

A dip in semiconductor stock prices also contributed to the downbeat mood with chipmaker Micron Technology shares off by 6 per cent after a disappointing revenue forecast late Wednesday. Nvidia fell 2.3 per cent, continuing its recent turbulent ride.

Megacap tech stocks advanced, meanwhile, with Alphabet, Microsoft and Meta Platforms rising 0.6 per cent to 1 per cent. Amazon rose 1.2 per cent after hitting $2 trillion (€186 trillion) value for the first time on Wednesday.

Walgreens Boots Alliance slumped 24.6 per cent after cutting its 2024 profit forecast and announcing plans to close more underperforming US stores.

Denim maker Levi Strauss slumped 16 per cent after falling short of expectations for second-quarter revenue. – Additional reporting: Bloomberg, Reuters

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