European shares dipped marginally on Monday as markets fretted about the economic impact from fresh restrictions in Beijing, as China reported its first Covid-19 deaths in six months.
While sentiment in commodity stocks was hit by the news, defensive food and beverage companies were in demand during European trading.
Before closing down 0.1 per cent, the pan-European Stoxx 600 index swung up and down during the entire session after marking its fifth straight weekly advance on Friday.
Dublin
The Iseq index advanced 0.2 per cent to 7,236.99, buoyed by CRH, which added 1.1 per cent to €38.43, as investors positioned themselves in advance of a trading update from the building materials giant on Tuesday morning.
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Banks were also a bright spot, with AIB up 1.4 per cent at €3.01, while Bank of Ireland added 0.5 per cent to €7.64.
Uniphar edged 0.9 per cent higher to €3.49 as investors digested news that the healthcare services group has acquired a Dutch pharmaceutical services business in a deal worth €75 million, including an upfront payment of €51 million.
Flutter declined by 1.9 per cent to €131.05 to hand back some of the gains it made on Friday.
London
The export-heavy FTSE 100 slipped 0.1 per cent as commodity stocks fell on concerns about Covid-19 curbs in top metals consumer China, although losses were limited as a weaker pound lifted shares of internationally focused consumer firms.
Energy sector stocks fell 3.3 per cent, while industrial metal miners shed 2 per cent as oil and copper prices dipped on worries about slowing demand from the world’s second-largest economy.
Further weighing on crude prices was a report which said that Saudi Arabia and other Opec oil producers are considering a half-million barrel daily output increase.
Drugmakers AstraZeneca and GSK rose 1.4 per cent and 2.1 per cent, respectively. Unilever, Diageo and British American Tobacco, with significant dollar revenues, gained between 1.1 per cent and 1.8 per cent as the pound fell.
Among individual stocks, Virgin Money, led by Irish banker David Duffy, jumped 14.9 per cent, topping the mid-caps, after the lender reported a 43 per cent increase in full-year profit as Bank of England rate hikes lifted its finances in advance of a likely prolonged economic downturn.
The world’s largest contract caterer, Compass Group, slipped 1.4 per cent after its underlying operating margin expectations for full-year 2023 fell short of market expectations.
Europe
Defensive sectors such as healthcare, food and beverages and media, which are typically preferred during times of economic uncertainty, rose between 1 per cent and 1.2 per cent, helping to limit broader market losses.
Julius Baer rose 1.6 per cent as the Swiss bank said it was on track to reach its 2022 profitability targets even though “challenging market” conditions have shrunk its assets.
Vallourec tumbled 13.2 per cent after the French steel pipemaker posted downbeat quarterly core profit.
Italy’s FTSE MIB index slid 1.3 per cent in advance of the approval of Italian prime minister Giorgia Meloni’s first budget by her cabinet.
New York
Wall Street’s main indexes were lower in early afternoon trading as investors mulled rising Covid-19 cases in China, though gains in Disney helped ease pressure on the S&P 500.
US casino operators with businesses in China including Wynn Resorts, Las Vegas Sands, MGM Resorts International and Melco Resorts & Entertainment slipped.
However, Walt Disney shares jumped on news of Bob Iger’s return as chief executive to the entertainment giant. He left the company in 2020.
Among other stocks, Tesla declined after the electric car maker said it will recall vehicles in the US over an issue that may cause tail lights to intermittently fail to illuminate.
Gay dating app Grindr plummeted amid a broader market weakness, after skyrocketing in its debut on the New York Stock Exchange in the previous session.
– Additional reporting: Reuters
