Markets end week on a downer amid fears for economies

European stocks headed lower on Friday, closing out the week on a negative note.

Dublin

The Dublin market ended the week in the red, as banking, construction and travel stocks all slipped, weighing on the index.

Both Bank of Ireland and AIB shares fell over the session, with AIB losing 2.7 per cent to close at €2.52, while Bank of Ireland tumbled almost 5.5 per cent to €7.

In building materials, Kingspan declined 1.24 per cent, while heavyweight stock CRH was down 1.19 per cent to €35.19.

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Packaging giant Smurfit Kappa saw its shares tumble almost 4 per cent to close the session at €32.18.

Flutter Entertainment was down almost 1.4 per cent, while shares in Ryanair fell to €11.87, a decline of almost 5 per cent.

London

London’s markets also sank into the red again and the pound tumbled as economic gloom descended on the City again ahead of central bank meetings next week. The FTSE 100 ended the day down 45.39 points, or 0.62 per cent, at 7,236.68.

Outsourcing giant Capita jumped in value after it reached a deal to sell payments business Pay360 in a transaction that values the firm at £150 million (€173 million). The buyer, Access PaySuite, will get a company with about 2,500 customers in the public and private sectors. Capita shareholders firmly welcomed the sale as shares grew by 3.22p to 28.74p at the end of trading.

Naked Wines made some positive inroads after announcing it had reappointed former chief Rowan Gormley as an adviser to help with the firm’s next strategy. It comes just days after a representative for one of its biggest shareholders left the board and the firm said it would review plans for the next 18 months. Shares rose 8.85p to 99.9p.

Royal Mail shares dropped to their lowest in almost two years after US delivery giant FedEx warned over a significant business slowdown, hammering confidence across the sector. Shares in Royal Mail fell 20.2p to 229.7p.

The biggest risers in the FTSE 100 were Ocado Group, up 21p at 671p; M&S, up 3.95p at 201.2p; Hikma, up 22p at 1,253p; Barratt, up 4.8p at 429p; and Aveva, up 27p at 3,052p.

The biggest fallers were IHG, down 229p at 4,670p; Dechra, down 138p at 2,950p; DS Smith, down 9.1p at 265.5p; Spirax-Sarco, down 310p at 10,070p; and Schroders, down 68p at 2,518p.

Europe

In Europe, the main markets were also firmly lower after World Bank warned that higher interest rates could help trigger a global recession.

The German Dax declined 1.81 per cent by the end of the session and the French Cac finished 1.38 per cent lower.

Earlier in the day, the European Central Bank’s vice-president said an economic slowdown in the euro zone would not be enough to control inflation and the bank would have to keep raising rates.

The day saw Tomra Systems decline almost 13 per cent, while property developer Entra fell more than 11 per cent. Utility company Fortum rose almost 8 per cent.

New York

US stocks extended their slump this week amid growing concern that outsized Federal Reserve interest-rate hikes will crimp economic growth. The dollar pared gains to trade mixed against its major counterparts.

At 11.56am ET, the Dow Jones Industrial Average was down 301.21 points, or 0.97 per cent, at 30,660.61; the S&P 500 was down 47.81 points, or 1.23 per cent, at 3,853.54; and the Nasdaq Composite was down 176.13 points, or 1.52 per cent, at 11,376.23.

FedEx plunged more than 20 per cent after the package-delivery giant withdrew its earnings forecast, citing weakening business conditions. Stocks briefly bounced off session lows following a University of Michigan survey that showed inflation expectations dipped.

Rivals UPS and XPO Logistics slid 4.4 per cent and 6.8 per cent, respectively, while Amazon.com slipped 2.9 per cent in the wake of the FedEx news.

All of the 11 S&P sectors declined, led by a 2.3 per cent fall in the industrial sector. The Dow Jones Transport Average Index dropped 5.1 per cent.