Global markets dipped on Tuesday as investors assessed a spate of mixed earnings in the United States amid signs that president Donald Trump’s protracted trade war is hitting corporate profit margins.
Dublin
Euronext Dublin did not escape the pain, but it marginally outperformed international peers as it finished the day down 0.1 per cent.
The main mover on the day was Ryanair, which climbed 0.3 per cent. The bounce came a day after the airline reported that profits more than doubled to €820 million in the three months to the end of June.
Among the financial names, AIB was down 0.9 per cent, while Bank of Ireland was largely flat on the day.
RM Block
Cavan-based insulation specialist Kingspan – one of the biggest companies on the index – finished down 1.3 per cent. It was a better day for the housebuilders as Glenveagh Properties and Cairn Homes ended the day up 1.8 per cent and 0.5 per cent respectively.
London
The FTSE 100 notched up 0.1 per cent to hit another record close, and hit an all-time intra-day high, despite the threat of higher UK taxes after figures showed a sharp increase in government borrowing.
The FTSE 250 closed down 0.4 per cent, and the AIM All-Share closed down 0.1 per cent.
On London’s FTSE 100, Compass Group rose 5.3 per cent after it raised full-year guidance and announced the 1.5 billion euro acquisition of Vermaat Groep.
Greencore jumped 12 per cent after it said third quarter revenue rose ahead of market forecasts.
Europe
The pan-European Stoxx 600 index fell 0.47 per cent, while Europe’s broad FTSEurofirst 300 index fell 0.47 per cent. The Cac 40 in Paris lost 0.8 per cent, while the Dax 40 in Frankfurt fell 1.1 per cent.
European natural gas fluctuated near a three-week low, with traders weighing ample supply against emerging pockets of demand across the globe. Benchmark futures hovered around €33 a megawatt-hour after three days of declines.
While there are signs that some global buyers of the fuel may see demand pick up, Europe has made relatively good headway in building up inventories so far this summer. Liquefied natural gas imports are expected to hit a record this year, the International Energy Agency said.
New York
The Nasdaq was pressured by falling megacap stocks, a day before major tech results are due, while investors assessed a spate of second-quarter corporate earnings and watched for signs of progress in US trade discussions.
Heavyweight tech names were the biggest losers. Amazon fell 1 per cent, Meta Platforms shed 1.1 per cent, Nvidia was down 1.6 per cent and Broadcom lost 2.3 per cent.
The S&P’s technology sector led sectoral losses and dropped 0.9 per cent, cooling from a record high in the previous session.
“Traders are just trying to position a little... because it’s (technology) had such a big run. Some might be hedging a little bit before the earnings,” said Max Wasserman, senior portfolio manager at Miramar Capital.
Some underwhelming corporate results also dimmed sentiment. General Motors saw its second-quarter profit skid 32 per cent, with the automaker blaming hefty tariff costs for carving out $1.1 billion from its results. Its shares lost 6.9 per cent, while peer Ford dipped 1 per cent.
Alphabet’s shares dipped 0.4 per cent, while Tesla edged up 0.5 per cent. Elevated earnings expectations for these stocks are already priced to justify their stretched valuations, leaving little room for disappointment.
“Unless you get real bad news or something that indicates a slowdown in the rate of growth, you could see a selloff,” Wasserman said.
The healthcare sector jumped 1.2 per cent to lead sectoral gains after declining for the last three sessions.
Meanwhile, Philip Morris fell 8.2 per cent after reporting second-quarter revenue below expectations. – Additional reporting: Agencies
