Global Stocks Drop Amid Tensions

Global equity markets plummeted on Tuesday amid lingering geopolitical concerns and in anticipation of upcoming earnings reports from major US tech companies later this week.

Euronext Dublin, in particular, saw a less than stellar performance compared to many of its international counterparts, as it closed the day with a decrease of 80 basis points.

The beverage conglomerate, C&C, also experienced a decline of approximately 4%, even after the company reassured it was on target to reach an annual operating profit of approximately €80 million, following a pretax profit of more than €40 million in the first half ending in August. Some traders found the figures unimpressive, sparking seller activity and a sentiment that the results should’ve been stronger.

In similar news, PTSB suffered a 3% decrease after conveying plans to revisit potential cost-cutting measures to safeguard and augment profitability amid a faster than anticipated drop in interest rates.

Dalata, the largest hotel chain operator in Ireland, however, remained steady. Market commentators labelled this as a positive outcome given the broad market downturn and a considerable volume of trading its shares witnessed.

Elsewhere, Origin Enterprises, an agricultural services provider, experienced a dip of around 4%. Shares in Grafton Group, the owner of Woodies DIY, also shrunk by 1.8% due to mostly sectoral shifts.

As for London, the FTSE 100 ended the trading session with a 0.8% fall mainly due to the poor performance of oil behemoth BP, which fell 5% after it revealed a nearly one-third drop in profits in the latest quarter due to declining refining margins. This news somewhat negated the positive effects from good performances by other London-based giants, HSBC and Pearson.

HSBC achieved robust gains upon disclosing an almost 10% increase in profits. This coincided with a statement from management about a planned reduction in senior banker positions to curtail expenses, as part of a significant restructuring plan announced recently. HSBC shares ended the day up by 3.1%.

Pearson, an educational publication firm, also saw a notable surge in its share price due to the company’s ongoing shift towards artificial intelligence. The quarterly report indicated a 4% growth in underlying revenues and led to a 4.3% increase in its shares.

In Europe, other main markets finished low. Even though German sportswear brand Adidas received a boost following a settlement linked to its now-defunct collaboration with Kanye West, the German Dax ended in the red. BP, Novartis and Santander’s disappointing quarterly results pushed the pan-European Stoxx 600 index down by 0.6%. The poor performance of Novartis, down by 4%, came despite the company’s third increase in its 2024 earnings guidance. Concerns about its less than anticipated radiopharmaceutical sales affected the stock.

The travel and leisure sector took a major hit, with the Lufthansa’s shares plunging by 5% in the wake of underperforming third-quarter operating profit.

In New York, Wall Street witnessed mixed outcomes. Alphabet’s (Google’s parent company) shares rose by 1.2% as investors awaited the corporate earnings results for the day. Nvidia reported a 0.5% rise; Apple remained steady while Tesla’s shares reduced by 1.5%.

VF Corp, owner of Vans, spiked by 24.5% as the company posted profits for the first time in two quarters. Ford’s shares dipped by over 8% as the company announced on Monday that it anticipates achieving only the bottom range of its annual profit projection for the year.

Condividi