European markets closed lower on Tuesday as investors geared up for the latest US inflation report this week. The pan-European Stoxx 600 closed 0.52 per cent lower, with sectors mainly retreating.
European shares failed to build on the previous day’s gains driven by China stimulus hopes, which only generated limited traction in Asia.
The main scheduled events of the week are still to come, however, with US inflation data due on Wednesday, and a meeting by the European Central Bank (ECB) on Thursday. With an ECB rate cut all but certain, investors will be watching for clues about its policy path.
Also top of mind for investors in emerging markets was Brazilian president Luiz Inacio Lula da Silva undergoing surgery in Sao Paulo to drain a bleed on his brain linked to a fall at home in October, according to a medical note published by the government.
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Dublin
Permanent TSB fell by 1.3 per cent to €1.47 after the lender announced a voluntary redundancy programme to staff, prompting speculation that it could see hundreds of employees depart the smallest of the three remaining Irish retail banks as it seeks to cut costs.
Rivals AIB and Bank of Ireland, in contrast, rose by 1.4 per cent and 3.3 per cent respectively. Home builders Cairn and Glenveagh were up again by approximately 1 per cent.
Both shares have increased in the wake of the Irish election result, which is likely to see the continuation and possible expansion of the Help to Buy and First Home schemes. Ryanair was down 0.9 per cent.
London
Britain’s FTSE 100 fell on Tuesday as mining shares slipped, while Ashtead dropped after it warned of lower-than-expected annual profit and proposed to move its primary listing to New York from London.
The blue-chip FTSE 100 fell 0.9 per cent, its worst day since November 12th, while the midcap FTSE 250 was down 0.4 per cent in its worst session for two weeks.
Shares of miners Glencore, Antofagasta and Anglo American fell between 1.1 per cent and 3.5 per cent as copper prices slipped, under pressure from a slowdown in China’s export growth and a stronger dollar.
Metal prices had rallied in the previous session on China’s planned move towards a “moderately loose” monetary policy for the first time since 2010.
Ashtead dropped 14 per cent to the bottom of the FTSE 100. The equipment rental firm said it was proposing to move its primary listing to New York from London and also warned of lower-than-expected annual profit due to a weak commercial construction market in the United States.
Ashtead joins a growing list of companies moving away from European listings in favour of US markets, where valuations are generally higher.
Europe
European stock markets closed lower on Tuesday, with the pan-European Stoxx 600 down 0.5 per cent. The index has nonetheless gained 1.63 per cent in December so far, according to LSEG data.
Reversing Monday’s trend, Germany’s Dax closed just above the flatline while France’s Cac led losses, down 1.14 per cent.
Shares of Germany’s Delivery Hero were down 10 per cent in late deals, after the company’s Middle Eastern subsidiary Talabat debuted on the Dubai stock exchange.
Talabat raised $2 billion through its initial public offering, but shares slid from an opening price on their first day of trading Tuesday.
New York
Wall Street’s main indexes were little changed in choppy trading on Tuesday, as investor focus remained on a key inflation report due later this week that could influence the Federal Reserve’s upcoming interest rate verdict.
Most megacap and growth stocks advanced, with Google-parent Alphabet jumping 3.6 per cent after it unveiled a new-generation chip on Monday, that the company said helped overcome a key challenge in quantum computing. The stock pushed the communication services subsector up 1.8 per cent to an all-time high.
Some gains were offset by a 7.2 per cent decline in Oracle after the cloud computing company missed Wall Street estimates for second-quarter results.
It weighed on server makers such as Dell and Hewlett Packard that fell 4.3 per cent and 3.7 per cent respectively. Five of the 11 major S&P sectors were down with real estate stocks leading losses with a 1.2 per cent fall.
Among other notable movers, software firm MongoDB slipped 13.2 per cent despite raising its forecast for annual results.
Alaska Airlines jumped 14.2 per cent as the carrier raised its fourth-quarter profit forecast, while Boeing added 5.3 per cent after Reuters reported the plane maker restarted production of its 737 Max jets last week. – Additional reporting by Reuters
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