Global equity markets ran into turbulence on Friday after a US jobs report exacerbated worries of an economic slowdown in the world’s biggest economy, with financials and tech the worst hit.
Dublin
The Irish index fell more than 2 per cent to round the week off in negative territory. Irish banking stocks mirrored the decline across Europe, with Bank of Ireland falling more than 6 per cent to €9.16 and AIB down 3.5 per cent, ending the week at €4.99. PTSB was 3.4 per cent weaker.
While Glanbia declined 2 per cent, food group Kerry rose 2 per cent to finish the week at €87.65.
Ryanair was 1.8 per cent off the pace, while ferry company Irish Continental Group was down 2.2 per cent to €5.20.
Construction stocks were also lower, with insulation specialist Kingspan shedding 5.1 per cent and home builders Cairn and Glenveagh down 2.1 per cent and 1.45 per cent respectively.
London
London stocks rounded the week off with heavy losses amid a global aversion to risk after a weak US jobs report spurred worries on the health of the economy there. Losses in commodity-linked stocks added to the downbeat sentiment.
The blue-chip FTSE 100 index was down 1.3 per cent, while the mid-cap FTSE 250 index slid 3 per cent to clock its worst day since September 2022.
Luxury goods group Burberry fell nearly 5 per cent after Italian peer Salvator Ferragamo reported a 41 per cent decline in its first-half operating profit.
Banks extended their declines from the previous session with a 3.6 per cent loss. The sector had logged its worst day since February 2022 on Thursday on a quarter-point rate cut by the Bank of England and as French lender Société Générale cut its guidance for retail net interest income.
IAG Group climbed 4.7 per cent to top the FTSE 100 after the British Airways owner terminated its proposed takeover of Spain’s Air Europa, citing regulatory concerns.
Europe
The pan-European Stoxx 600 index fell again, closing 2.7 per cent down on 497.85 points, hitting an over three-month low.
Most European sub-indices traded lower, with the technology sector falling 6.1 per cent, its biggest one-day decline since October 2020, tracking a sell-off on Wall Street.
The financial sector lost 5.2 per cent, while banks shed 4.3 per cent, extending declines from the previous session when the sector was hit by downbeat earnings and prospects of global monetary policy easing.
Individual heavyweights such as consumer staples Unilever and Nestlé and pharma firms AstraZeneca and Sanofi gained between 0.3 per cent and 1.3 per cent.
Among other movers, Dutch specialty chemicals maker IMCD added 6.7 per cent after beating estimates on second-quarter Ebita.
French insurer Axa was up 1.4 per cent after BNP Paribas said it was in exclusive talks with the company to acquire its investment managers arm for €5.1 billion.
New York
The Nasdaq Composite was set to plunge to a correction on Friday, falling more than 10 per cent from its July peak after weak employment numbers aggravated worries of a slowdown in the US economy.
The S&P 500 hit its lowest level since July 11th and the Dow was on track for its biggest two-day percentage fall since early March 2023.
Amazon.com slumped 11.7 per cent after the company reported slowing online sales growth in the second quarter and said cautious consumers were seeking cheaper purchase options.
Intel tumbled 26.7 per cent after forecasting third-quarter revenue below estimates, suspending its dividend from the fourth quarter and cutting another 15 per cent of its workforce.
Other chip stocks were also set to extend Thursday’s losses. Nvidia fell 4.4 per cent, Broadcom lost 3.3 per cent, Micron Technology shed 5.7 per cent and Arm Holdings was down 6.3 per cent.
Apple inched 2.3 per cent higher as it posted better-than-expected third-quarter iPhone sales and forecast more gains, betting on AI to attract buyers. Microsoft and Alphabet shed around 2 per cent each. Meta also dropped, losing 1 per cent. – Additional reporting: Reuters
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