Global shares fell on Wednesday, as unease among investors about the risk of a widening conflict in the Middle East translated into a rise in the price of oil and gold.
Compounding concerns about the geopolitical tension was the prospect of interest rates remaining high, as UK data indicated higher-than-expected consumer inflation data in September.
Dublin
The Iseq was down 1.07 per cent on Wednesday, closing at 8,113.8.
Among the banks, AIB lost 0.96 per cent, closing at €4.34. Bank of Ireland was also down, falling by 1.31 per cent to close at €9.352. Meanwhile, Permanent TSB gained 3 per cent to €2.06.
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There was little on the upside on the day, with some of the largest gains for software developer Datalex, which rose by 1.82 per cent to €0.56, and agri-services group Origin Enterprises which gained 1.34 per cent to €3.40.
Nutrition company Kerry Group rose by 0.27 per cent to €74.56, while packaging company Smurfit Kappa gained 0.41 per cent to €31.65.
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The biggest downward movers included budget airline Ryanair, which fell by 3.06 per cent to €14.585. This reflected a fall across the airline sector, as US peer United Airlines warned that suspension of flights to Tel Aviv and higher fuel costs would drag on future profits.
Paddy Power parent company Flutter Entertainment fell by 1.56 per cent to €151.10 and building materials company Kingspan fell by 0.43 per cent to €65.34.
London
UK stocks fell on Wednesday as higher-than-expected consumer inflation data cemented fears of the Bank of England further tightening monetary policy.
The export-heavy FTSE 100 Index fell by 1.14 per cent, closing at 7,588.00. The more domestically focused FTSE Mid-Cap 250 Index was down 1.62 per cent, to close at 17,403.46.
Data showed British annual consumer price inflation held at an 18-month low of 6.7 per cent in September, but was above expectations for a retreat to 6.6 per cent. Meanwhile, the core inflation fell less than expected, raising fears of another Bank of England rate hike.
The UK’s largest home builder Barratt Developments refrained from providing a full-year profit forecast, citing an “uncertain” outlook in a challenging mortgage market. The stock lost 5.14 per cent.
Whitbread shares jumped rose by 1.29 per cent after the hotelier announced a share buyback plan of £300 million (€346.15 million) following a 44 per cent rise in half-yearly profit.
Europe
European shares slid on Wednesday under the weight of deepening fears of escalation of the Middle East conflict and a downbeat forecast for the semi-conductor sector.
The pan-European Stoxx 600 Index lost 0.99 per cent, while the German DAX Index fell by 1.03 per cent, and the French CAC 40 was down 0.91 per cent.
Dutch chip equipment firm ASML dropped 3.44 per cent after its order intake plunged in the third quarter, amid a slump in the semi-conductor industry.
Swiss-Swedish technology company ABB fell by 5.43 per cent after posting worse-than-expected earnings and flagging slowing orders in Europe and China.
New York
Wall Street also dipped on Wednesday as the Middle East conflict dampened risk appetite and raised oil supply concerns, bringing down all three indexes.
AI software company Nvidia fell on Wednesday as it revealed details of how US restrictions on chip exports to China could affect its sales.
United Airlines Holdings shares dropped after the airline forecasted weaker fourth-quarter profit due to higher costs. Rivals American Airlines and Delta Air Lines also fell.
Financial services firm Morgan Stanley reported that its third-quarter profit dropped less than expected, as a strong performance in its wealth management division offset a hit from a lull in deal-making. However, the company’s shares fell to a more than one-year low on Wednesday.
Consumer goods maker Procter & Gamble gained after its quarterly sales topped market expectations. — Additional reporting: Reuters
