European shares fell on Tuesday as commodity-linked stocks tracked declining prices, while investors also assessed the chances of Republican candidate Donald Trump winning the US presidential race.
Luxury fashion stocks were also hammered again after a profit warning from Hugo Boss and the announcement of weak China sales at Richemont.
Dublin
The Iseq climbed 0.7 per cent, with the market led up by Kingspan, Ryanair and AIB.
Insulation-maker Kingspan advanced 1.9 per cent to €87.45, while Ryanair rose 0.6 per cent to €17.15. AIB gained 1.4 per cent to €5.28, but Bank of Ireland edged 0.15 per cent lower to €10.20.
Food stocks also fell, though Kerry Group was down just 0.2 per cent by the end of the session, finishing at €78.05.
London
London’s benchmark FTSE 100 closed 0.2 per cent lower, falling for a second straight session on Tuesday as it was hurt by fresh declines in Burberry shares as well as a drop in metal and oil stocks after commodities came under pressure from weaker-than-expected Chinese data.
Luxury goods maker Burberry dropped 5.3 per cent following a 16 per cent plunge on Monday when it warned on profit, scrapped its dividend and announced the departure of its chief executive.
Energy and mining giants including Shell, Glencore and Rio Tinto all fell after data showed China’s economy grew much slower than expected in the second quarter. Rio Tinto’s decline of 2.3 per cent also came after the global mining giant reported second-quarter iron ore shipments below estimates.
Discount retailer B & M climbed 4.3 per cent after it reported higher first-quarter revenue and 19 store openings.
The mid-cap FTSE 250 edged up 0.1 per cent, with Ocado gaining 5.9 per cent after the online supermarket and technology group reported a smaller first-half loss and raised its annual forecast.
Europe
The pan-European Stoxx 600 closed 0.3 per cent lower, with the basic resources subindex leading sectoral declines with a 1.7 per cent fall, tracking slipping base metal prices. Heavyweight energy shares lost 0.9 per cent after crude oil prices fell.
Shares of Hugo Boss tanked 7.5 per cent after the German fashion house cut its sales and earnings forecasts for the year, citing weakening global consumer demand, especially in China and the UK. Other luxury players in the region also remained under pressure with a gauge of the top 10 European luxury stocks down over 1 per cent, compounding a 3 per cent fall in the last session.
The ZEW economic research institute said German investor morale deteriorated more than expected in July, registering its first fall in a year, and suggested the recovery in the euro zone’s largest economy will be bumpy.
French reinsurer Scor plunged 24.6 per cent to its lowest since March 2023 after cutting guidance for its life and health unit. The stock dragged the insurance subindex down 1 per cent.
Swedish banking group SEB rose 2.7 per cent on reporting a better-than-expected quarterly net profit and maintaining its annual cost outlook as other revenue streams helped offset pressure from an easing interest income momentum.
US
The Dow led Wall Street’s main indexes higher in early trading on Tuesday, boosted by UnitedHealth’s strong results and as unexpectedly robust retail sales data signalled a still-resilient US economy, but did little to dampen rate-cut bets.
UnitedHealth Group jumped 4.3 per cent after its earnings figures beat analysts’ expectations.
Among other corporate earnings Bank of America jumped 3.6 per cent after an upbeat net interest-income forecast and better-than-expected second-quarter profit, steering the S&P 500 Financials index to a record high.
Morgan Stanley fell 1 per cent after its wealth management revenue missed estimates, while Charles Schwab slumped 7 per cent after posting lower net income.
Additional reporting: Reuters
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
