European equity markets were lower on Thursday after a raft of corporate earnings in the US and Europe, while a rate cut in the UK and prospects of upcoming policy easing in the United States boosted global bonds.
DUBLIN
The Iseq Index slightly outperformed its European peers, shedding close to 1.8 per cent amid big declines for the Irish bank stocks.
Bucking that trend, PTSB shares moved 2 per cent higher to €1.58 as the smallest of Ireland’s pillar banks reported on Thursday morning that its share of the mortgage market crept higher in the second quarter from recent lows as it returned to offering competitive rates. Pretax profit for the first six months of the year almost tripled to €75 million.
Bank of Ireland and AIB, meanwhile, slid 6.1 per cent and 2.1 per cent to €9.83 per share and €5.19 respectively.
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Kerry Group lost some of the momentum built up after revising its full-year earnings guidance upwards on Wednesday, with the food group shedding 1.1 per cent to €85.40 per share.
Ryanair slid 0.9 per cent to €14.50 per share as part of a wider sectoral move.
Home builders, meanwhile, were mixed on the session with Cairn Homes down 1.1 per cent to €1.86 while Glenveagh advanced by 0.6 per cent to €1.38 per share.
LONDON
The UK’s benchmark FTSE 100 index slipped by more than 1 per cent, led lower by tumbling bank stocks, while the mid-cap FTSE 250 shed 0.8 per cent per cent despite hitting its highest level in nearly two years earlier in the session.
Shares in Lloyds, HSBC and NatWest all fell by between 5.7 per cent and 8 per cent despite upbeat results from Barclays. That lender slipped 4.6 per cent after announcing a £750 million share buyback scheme that did little to dampen concerns about future interest rate cuts by the Bank of England.
But Rolls-Royce hit a record high after the aerospace and defence supplier beat expectations in the first half and raised its outlook for the full year.
EUROPE
Europe’s main indices were all lower on the session with Stoxx 50 down 2.3 per cent while the pan-European Stoxx 600 slipped 1.3 per cent. Major national markets were also down, with Germany’s Dax and France’s Cac40 both 2.2 per cent weaker.
Analysts said a slew of profit warnings from major European companies over the summer earnings season continued to dampen spirits.
Moving towards the top of the blue-chip Stoxx 50 index, Anheuser Busch advanced by 2.5 per cent after the Budweiser-maker’s reported a 3.2 per cent decline in North American sales in the second quarter, less than analysts had expected.
European markets were otherwise a sea of red with banks in particular trending lower as investors eye the prospect of further monetary policy easing in the near future. SocGen tumbled as the French lender’s domestic retail unit disappointed. Shares of Credit Agricole also declined despite upbeat results.
Automakers also underperformed as Volkswagen’s second-quarter margins declined, with restructuring charges weighing on its volume brands as well as lower deliveries in China. BMW also dropped after its earnings fell on waning sales in its key market China.
NEW YORK
On Wall Street, the S&P 500 gained 0.2 per cent while the Nasdaq Composite added 0.5 per cent by the time Dublin’s closing bell rang. The Dow Jones Industrial Average, on the other hand, slid by more than 1.2 per cent.
US tech stocks have made an extraordinary comeback after a recent sell-off, analysts said. AI darling Nvidia rallied 13 per cent on Wednesday, adding about $330 billion in stock market value.
Tech giants Apple, Amazon and Intel will report their earnings later on Thursday. – Additional reporting: Reuters/Bloomberg
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