Worldwide markets experienced a decline on Tuesday due to economic uncertainties in the USA, ahead of an essential employment report anticipated to influence the pace at which the Federal Reserve reduces rates.
In Dublin, Euronext saw a decrease of 1% at the end of trading, pulled into the negatives by its more significant assets. Banks such as AIB and Bank of Ireland also witnessed a drop of 2.4% and 2.1% respectively. Kingspan, an insulation specialist and a large firm remaining on the Iseq after multinational corporations CRH and Flutter exited, dipped by 3% throughout the day. However, amidst the negatives, Kerry Group, a dairy titan, ended the day with a rise of 0.7%, along with budget-friendly airline Ryanair which saw a 0.9% increase.
Over in London, the FTSE 100 hit the lowest figure in more than seven days due to a considerable divestment in resources-related shares, caused by a decrease in metal and oil prices. It concluded the day with a drop of 0.8%, marking its most significant daily fall in a fortnight. The FTSE 250, more domestic in focus, similarly fell by 0.8%, marking their worst figures in the last three weeks.
The personal care, pharmaceutical, and grocery stores sector benefitted from a 1% increase, supported by a 3.1% upturn from the online grocery and technology firm Ocado. Tesco, a retail giant, also saw a 1.6% increase following a price target improvement from UBS. The Watches of Switzerland Group rose by 6.3% as the company confirmed they are on course to hit their yearly target, contributing to a 0.4% hike in the personal goods index.
Rolls-Royce saw an increase of 1.7 per cent following an announcement from Cathay Pacific Airways in Hong Kong that successful repairs had been conducted on three of the 48 planes from the British engine producer currently under examination. All jetliners are forecast to be back in service by Saturday.
EUROPE
Europe experienced a less than favourable trading session, the worst in close to a month. The Stoxx 600 index across Europe decreased by 1 per cent, and the Dax in Germany dipped 0.9 per cent from a record peak earlier in the day.
Shares in Spain, France, and Italy plunged between 0.9 per cent and 1.3 per cent. The downward trend began at the opening of the session and intensified following publication of US manufacturing data, which indicated weak factory activity, heightening fears about the health of the world’s biggest economy.
The largest European indices experienced their biggest slump since a worldwide equity sell-off spurred by renewed concern over a potential US recession in early August. Less than stellar performances from the energy and basic resources sectors, down 2.8 per cent and 3.3 per cent respectively, amplified the downturn, with the latter seeing its worst day since October 2023.
NEW YORK
The principal indexes on Wall Street retracted over 1 per cent as investors analysed lacklustre factory activity figures ahead of a raft of job market reports predicted for the week. These releases could potentially impact the level of monetary policy relaxation undertaken by the Federal Reserve.
The S&P 500 industrials sector declined more than 1.6 per cent, with giants like Caterpillar and 3M negatively affecting the Dow too.
Megacap stocks, key drivers of this year’s rally, dropped significantly, with Nvidia plummeting 7.3 per cent, Microsoft down 1.2 per cent, and a fall in chip stocks pushing the Philadelphia SE Semiconductor index down by 5.7 per cent.
The wider technology sector, which has surged more than 22 per cent since the beginning of the year, led the decline with a 3.3 per cent decrease.
Separately, Tesla saw a slight 0.6 per cent increase following reports of its plans to manufacture a six-seat variant of the Model Y car in China from 2025.
Wells Fargo’s decision to downgrade Boeing’s shares from “equal weight” to “underweight” resulted in an 8.1 per cent loss for the aeronautics company.
A majority of the 11 sectors of S&P 500 faced a downturn in trading. Conversely, sectors considered to be safety nets – including consumer staples, health care, and utilities – enjoyed slight improvements. This update also utilises information contributed by various agencies.