European shares ended Wednesday on a dour note, with the Stoxx 600 closing at a three-month low as rising energy shares countered real estate losses.
US stocks, meanwhile, pared early declines after consumer prices increased as expected in October, meaning expectations that the Federal Reserve will deliver a third interest rate cut in December remained in place.
Dublin
The Iseq fell 1 per cent, underperforming the trend across Europe as several key stocks slipped into the red.
Kingspan shed 3.6 per cent, with the building materials group finishing at €74.45, while food group Kerry slid 1.1 per cent to €90.30. The banks also had a weak day, with AIB down 1.6 per cent at €5.22 and Bank of Ireland closing 1.4 per cent lower at €8.45.
It was a better session for Cairn Homes, which rose 1.4 per cent to €2.16, while Glanbia rose 1 per cent to €14.60 and Ryanair was flat at €18.68.
London
The UK’s FTSE 100 edged up 0.1 per cent as US inflation data was in line with expectations, keeping hopes of rate cuts intact, while defence company Smiths Group rallied after upgrading its revenue outlook.
The FTSE 250 index of midcap companies dipped 0.3 per cent.
Smiths Group rallied 10.5 per cent, having touched a record high earlier, after the British engineering firm upgraded its annual organic revenue outlook following strong demand for its next-generation scanning and explosives detectors.
Babcock jumped 3 per cent after the defence group said it was on track to meet forecasts for the full year as the backdrop of geopolitical instability drives demand for its defence equipment and services.
Europe
The pan-European Stoxx 600 index closed down 0.1 per cent at 501.59 points, its lowest level since August 13th.
Most regional bourses also ended lower, with Germany’s Dax losing 0.2 per cent, while France’s Cac 40 was down 0.1 per cent.
Heavyweight technology stocks were among the major subsector decliners, dropping 1 per cent, while autos also fell 1 per cent. Rate-sensitive real estate stocks were the biggest drag on the index, losing 1.4 per cent. Energy stocks, however, added 1.3 per cent.
European shares have come under pressure recently as investors assessed the likelihood of tariff increases after Donald Trump’s sweeping victory last week.
Siemens Energy jumped 18.9 per cent after the utility sector supplier raised its midterm margin target and set a new order book record.
RWE advanced 6.1 per cent after Germany’s biggest utility said it would buy back shares worth up to €1.5 billion.
Just Eat Takeaway surged 15.9 per cent after Europe’s biggest meal delivery firm said it struck a deal to sell its US unit Grubhub to Wonder for $650 million.
US
The S&P 500 and the Dow nudged higher after consumer price inflation data kept the Federal Reserve on track to deliver another interest rate cut.
The consumer price index rose 0.2 per cent in October for the fourth straight month, the Labor Department’s Bureau of Labor Statistics said, and advanced 2.6 per cent on an annual basis. Excluding the volatile food and energy components, the CPI increased 0.3 per cent in October.
Communication services stocks declined 0.4 per cent, weighed down by Alphabet shares, which were down 1.2 per cent.
Spirit Airlines’ shares plunged 56 per cent after a report the US carrier is preparing to file for bankruptcy protection, while the company said it is in talks with creditors.
EV maker Rivian soared 16.7 per cent after Volkswagen on Tuesday raised its investment in the company by 16 per cent to $5.8 billion.
Additional reporting: Reuters
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to 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
