Global markets fell back on Wednesday with a sharp sell-off in some of the world’s biggest government bond markets and a continued rise in the dollar. Markets were also fretting over persistent inflationary pressures.
Dublin
The overall Iseq index fell 0.63 per cent to a price of 9,714.69. Kingspan dropped 3.57 per cent to €67.45 a share. Glenveagh Properties fell 1.18 per cent to €1.50.
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In the banking sector, Bank of Ireland fell 0.53 per cent to €8.69 and AIB rose by 3.92 per cent to €5.56. Ryanair fell 1.30 per cent to €18.96 a share. Food suppliers Kerry Group fell by 0.64 per cent to €93.25. Glanbia retreated by 1.97 per cent to €13.47.
London
The blue-chip FTSE 100 was broadly flat, cushioned by a 1 per cent drop in sterling that helped international firms on the index that draw a major portion of their revenues overseas.
Rheinmetall, Dassault Aviation, Leonardo and BAE Systems rose between 3 per cent and 5.1 per cent.
A sell-off in some of the world’s biggest government bond markets appeared more pronounced in UK government bonds, fanning worries about the impact of higher borrowing costs on the British government’s already shaky finances.
The domestically-focused FTSE 250 mid-cap index fell nearly 2 per cent to a five-month low.
Thirty-year government bond yields hit their highest since 1998 at 5.383 per cent, while 10-year yields rose as high as 4.821 per cent to levels last seen in 2008.
Government bond yields have risen in recent weeks as most investors now expect the Bank of England to cut rates by only about half a percentage point this year, while inflation looks likely to hover above the central bank’s 2 per cent target.
Europe
The pan-European Stoxx 600 closed down 0.2 per cent.
In Paris, the Cac 40 slid 0.49 per cent on Wednesday, and in Frankfurt, the Dax closed 0.05 per cent lower. Yields across European government bonds shot up, with those on the German benchmark 10-year notes hitting their highest level in more than five months, mirroring a rise in US Treasury yields.
Retail stocks were among the worst hit in Europe, falling 1.8 per cent, while healthcare stocks, often considered a safer bet during times of uncertainty, rose 0.8 per cent.
Novo Nordisk rose 2.8 per cent after UBS upgraded the drugmaker’s shares to “buy” from “neutral”.
The European aerospace and defence sector rose 1.1 per cent after US president-elect Donald Trump called for higher spending from North Atlantic Treaty Organisation allies at a press conference late on Tuesday.
Shell slipped 1.4 per cent after the energy major trimmed its liquefied natural gas production outlook for the fourth quarter.
Another set of data on Wednesday showed German industrial orders and retail sales unexpectedly fell in November, while euro zone economic sentiment contracted in December.
New York
US stocks were muted on Wednesday, as uncertainty prevailed on Wall Street after the release of two conflicting sets of jobs data and a CNN report that said Mr Trump was mulling a national economic emergency declaration.
The Dow Jones Industrial Average rose 0.01 per cent, the S&P 500 gained 0.08 per cent and the Nasdaq Composite lost 0.01 per cent.
The Russell 200 index tracking domestically focused small-cap companies dropped 1 per cent.
Megacaps were mixed with Microsoft up 0.6 per cent, Alphabet flat and Meta falling 1 per cent; eBay rose 11.1 per cent after Meta Platforms said it will launch a test showing the ecommerce firm’s listings on Facebook Marketplace.
Quantum-computing stocks Rigetti Computing fell 48 per cent, IonQ dropped 44 per cent and Quantum Computing lost 48.5 per cent after Nvidia boss Jensen Huang said computers based on the emerging technology are as much as 30 years away. Additional reporting: agencies
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