Recession worries stalk markets on dismal day

Concerns that global central banks would retain their aggressive stance on inflation weighed on stock markets, with dismal earnings updates from a slew of companies including Adidas adding to worries about a recession.

Dublin

The Iseq ended the day 1.5 per cent lower, wrapping up the week on a negative note and tracking other European markets.

Shares in Bank of Ireland fell 2.3 per cent over the session, closing the week at €7.27. AIB fared slightly better, losing 0.8 per cent to €2.91, while Permanent TSB gained 1.84 per cent.

In travel stocks, Ryanair ended the session off by 1.3 per cent at €11.18, while hotel group Dalata lost 1.3 per cent.

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Building stocks also suffered. CRH saw its stock dip almost 2 per cent to €34.05, while Kingspan lost more than 3.5 per cent to close at €48.90. Glenveagh Properties fell to 92.7 cent, a loss of 3 per cent, while Cairn Homes was half a per cent off at 91 cent.

London

The blue-chip FTSE 100 index rose 0.4 per cent, while the midcap FTSE 250 slipped 1.1 per cent. Both the indexes logged weekly gains of more than 1 per cent after a reversal of departing UK prime minister Liz Truss’s failed tax plan earlier this week.

Ms Truss quit on Thursday, with the shortest and most chaotic tenure of any UK prime minister, forced out after her unfunded tax cut proposals crashed the pound and sent UK borrowing costs soaring.

On top of the political chaos, fresh data showing that retail sales fell last month put a dampener on the London Stock Exchange, with shares in big retailers such as JD Sports, Frasers Group and Next all slipping to the bottom of the FTSE 100.

Among individual stocks, Deliveroo gained 3.5 per cent after the food delivery company upgraded its adjusted earnings margin guidance and said it was confident it could adapt to the worsening economic outlook.

Holiday Inn owner IHG fell 2.1 per cent after saying its chief financial officer would step down.

Europe

The Stoxx 600 share index fell on Friday as concerns grew on interest rates policies, with dismal earnings updates from a slew of companies including Adidas adding to worries about a recession.

The region-wide Stoxx 600 ended 0.6 per cent lower, after closing higher on Thursday following the resignation of Ms Truss. Still the index logged a weekly gain of nearly 1.3 per cent.

Adidas dropped 9.5 per cent as the German sporting goods maker cut its full-year outlook, citing weaker demand. Rival company Puma followed it down with a drop of 7.3 per cent.

Shares of beauty giant L’Oreal dipped 5.8 per cent. French carmaker Renault confirmed its full-year outlook and posted higher quarterly sales. Shares of the company inched up 0.1 per cent.

The German Dax was down 0.29 per cent and the French Cac was 0.85 per cent lower.

New York

The S&P 500 and the Dow rose on Friday after a report said the US Federal Reserve will likely debate on signalling plans for a smaller interest rate hike in December, while declines in social media firms capped gains on the Nasdaq.

The report helped markets recoup declines from earlier in the session when Snap plummeted 30.86 per cent after posting its slowest quarterly revenue growth in five years as advertisers cut spending due to inflation and geopolitical woes.

Other companies that rely heavily on ad revenue such as Alphabet and Meta Platforms fell 0.20 per cent and 2.52 per cent, respectively, pushing the S&P 500 communication services sector index down 0.55 per cent.

Verizon Communications shed 5.27 per cent as its profit slid 23 per cent and the carrier missed estimates for wireless subscriber additions. — Additional reporting: Reuters/PA