Battered by weeks of elevated oil prices and government bond yields, European investors had pinned their hopes on corporate earnings to breathe life into equities, but results have been uneven so far.
Now, on Wednesday, hotter-than-expected inflation readings in the US have revived fears of higher interest rates.
The news sent Wall Street lower following a rally in shares among European technology firms earlier in the day, led by chipmaking equipment group ASML.
Dublin
The Iseq All-Share index fell by 0.9 per cent to close at 14,084.62 on Wednesday afternoon.
RM Block
Kerry Group continued its advance, with shares up 0.8 per cent to €91.30. Since the beginning of the week, its shares have risen more than 4 per cent.
The next biggest riser in the day was property developer Glenveagh, which saw its price up 0.6 per cent to €2.35, followed by Glanbia, which was up 0.6 per cent to €20.10.
Microsoft president Brad Smith: Ireland is “well-positioned for future of AI”
Larger losses were recorded by companies at the other end of the index, with shares in Ryanair down by almost 2.7 per cent to €22.10.
Gene Murtagh’s Kingspan group saw its share price fall by close to 1.5 per cent to €101.50, while Mincon Group slipped 1 per cent to €0.99.
London
The FTSE 100 ended up 0.7 per cent at 10,724.86 on Wednesday, lifted by consumer and defence stocks.
Among consumer staple firms to rise were Unilever and Burberry, which gained 2.5 per cent and 3 per cent respectively. British American Tobacco was up 0.7 per cent, while spirits maker Diageo was up 1 per cent.
Elsewhere, following a call from activist investor Ancora for a strategic review, the self-storage firm Big Yellow rose 5.4 per cent.
Financial services firm Admiral slipped 2.6 per cent after Peel Hunt cut its price target, warning the insurer’s UK motor policy growth could slow as it raises rates to protect margins.
Defence products maker Chemring climbed 2.4 per cent after its Roke unit secured a partnership with a major US contractor, including an initial $16 million order and a minimum $170 million (€152 million) agreement over five years.
Europe
European shares notched slim gains after robust earnings from ASML reassured investors concerned about AI demand.
The pan-European STOXX 600 index gained 0.43 per cent to 637.75 points on Wednesday. The healthcare index was the biggest gainer on the benchmark, rising 2.3 per cent to hit its highest since early September.
Shares of semiconductor firm ASML rose 1.2 per cent after it said customers were already looking to place orders for its advanced chipmaking tools for 2029 and 2030, illustrating that demand remains sturdy.
Among other movers, Orsted dropped 3.9 per cent following a report by Bloomberg News that the US would re-evaluate the permit for its wind farm near Rhode Island.
New York
Wall Street stocks fell on Wednesday after data showed US consumer prices rose more than expected last month, reinforcing expectations the Federal Reserve may raise interest rates as soon as this month.
US Labour Department data showed the core consumer price index (CPI) was up 0.3 per cent in September versus economist expectations for a rise of 0.2 per cent. On an annual basis, core CPI, which strips out food and energy prices, rose 2.6 per cent, above forecasts for a rise of 2.5 per cent. The headline rate rose 3.7 per cent, above estimates for a rise of 3.6 per cent.
On Wall Street, all three indexes were trading lower, with technology and industrials driving losses while healthcare, consumer staples and energy stocks were higher.
In early afternoon trading, the Dow Jones was down 0.3 per cent, the S&P 500 fell 1.1 per cent and the Nasdaq was 1.62 per cent lower.
Large US banks reported earnings on Wednesday, with Bank of America saying profits fell in the third quarter and Morgan Stanley showing it beat expectations for its third-quarter profit thanks to strong equity trading.
The S&P 500 technology index traded at a two-week low, as chip stocks came under pressure again. They lost ground on Tuesday after reports pointing to progress in chip design by China’s CXMT fuelled competition concerns.
Shares of Intel and Micron fell 2.6 per cent and one per cent, respectively, while Nvidia slipped 1.7 per cent.
Most Magnificent Seven stocks declined, barring Alphabet and Apple, which rose 0.2 per cent and 0.9 per cent, respectively. – Additional reporting: Reuters
