Global equities fell on Wednesday after US President Donald Trump ramped up his trade rhetoric, promising 25 per cent tariffs on a host of goods from cars to pharmaceutical imports.
“I probably will tell you that on April 2nd, but it’ll be in the neighbourhood of 25 per cent,” the Republican Party leader told reporters at his Mar-a-Lago club when asked about his plan for car tariffs.
Of Irish interest in New York, Intel shares held on to most of Tuesday’s 16 per cent surge amid reports suggesting the troubled chipmaker, a significant employer in the Republic, could be broken up.
Dublin
The Iseq index fell by 1.4 per cent on Wednesday, broadly in line with its European peers.
Ryanair fell by more than 2.2 per cent to €19.98 per share, part of a broader move by the sector after UK travel Jet2 warned of a profits squeeze.
Home builders Cairn Homes and Glenveagh slid by 2.1 per cent and 1.4 per cent to €2.23 and €1.57 per share respectively.
Bank of Ireland and AIB, meanwhile, dropped by almost 1 per cent and 1.6 per cent to €10.07 and €6.17.
London
The benchmark FTSE 100 was down by 0.6 per cent with the mid-cap FTSE 250 down 0.8 per cent after UK inflation rose more than expected and mining giant signalled plans for a London exit.
Britain’s inflation accelerated to a 10-month high of 3 per cent in January, surpassing expectations and testing the Bank of England’s confidence that price pressures will ease over the longer term.
Meanwhile, shares in Glencore sank 7.3 per cent after the miner and commodity trader reported that lower commodity prices impacted its earnings last year.
The chief executive of the group also said it was studying whether a move away from London would boost its shares – with New York top of the list of potential destinations.
The UK housebuilders’ index dropped, with home builders such as Persimmon, Taylor Wimpey and Barratt Redrow falling between 1.2 per cent and 3 per cent.
Jet2 sank by more than 10 per cent after the travel company warned of profit margin pressure due to high inflation increasing costs and reducing consumer holiday spending.
Peers EasyJet and Wizz Air were down more than 4 per cent.
Europe
Europe’s blue-chip Stoxx 50 dropped 1.3 per cent while the pan-European Stoxx 600 fell by 0.9 per cent as investors digested Mr Trump’s latest tariff threats.
Few sectors were left untouched after the US president threatened tariffs on everything from European cars to semiconductors.
Automakers BMW and Volkswagen plunged by 2.3 per cent and 2.8 per cent while luxury brands Hermes and LVMH tumbled 2.9 per cent and 2 per cent respectively.
Banks were hard-hit as Spanish lenders BBVA and Santander sank 2.6 per cent each. Dutch lender ING fell by 1.8 per cent and France’s BNP Paribas slid by 1.1 per cent.
Despite Mr Trump’s rhetoric, European chipmakers held their own with ASML flat on the session and Infineon ahead by 0.6 per cent.
New York
Wall Street’s main indices slipped from record highs as the Trump administration’s trade threats heightened inflation concerns.
Seven of the S&P 500’s 11 sectors traded lower, with materials leading declines with a 1.3 per cent fall, while energy was the highest gainer with a 1.1 per cent rise.
Intel shares retreated by 5.6 per cent but held on to most of Tuesday’s 16.1 per cent gain. Shares in the embattled tech group soared on Tuesday after the Wall Street Journal reported that Broadcom and Taiwan Semiconductor are weighing bids that could potentially split up the chipmaker.
Its rival, Analog Devices, gained 5.5 per cent after the chipmaker beat first-quarter profit and revenue estimates.
On the results front, ecommerce company Etsy reported fourth-quarter earnings that missed expectations and gave an outlook that points to ongoing struggles.
Online dating company Bumble gave a first-quarter forecast that was weaker than expected on key metrics.
US-listed shares of Garmin jumped 13 per cent after the Swiss navigation device maker forecast full-year results above estimates. – Additional reporting: Reuters, Bloomberg
