European shares almost hit a one-month low on Tuesday, amid heightened fears over public finances in some big economies and their impact on the global economy.
Investors are worried about the sustainability of the debt of several countries in Europe and around the world, sparking a sell-off in longer-dated German and French bonds and rising yields or market interest rates. Bond yields move inversely to prices.
The STOXX 600 index dropped 1.5 per cent to close at 543.35 points, with rate-sensitive property stocks the biggest drag.
DUBLIN
Uniphar rose by 1.4 per cent to €4.10 after the healthcare group reported that earnings per share rose 21 per cent in the first half of 2025, the fastest rate in several years. “All [financial] targets have been reiterated, and the outlook is very positive,” said Davy analyst Colin Grant.
RM Block
Ryanair lost 3.6 per cent to €24.22, gleaning no support from news that its passenger numbers rose 2 per cent in August to reach a new record for the month.
A sell-off across European property stocks sent Cairn Homes down 2.5 per cent to €2.16 in advance of results on Wednesday and resulted in Glenveagh falling 1 per cent to €1.94.
Banking stocks also lost ground, with Bank of Ireland falling 0.4 per cent to €12.72, AIB dipping 0.1 per cent to €7.03 and PTSB declining 0.4 per cent to €2.26.
LONDON
The FTSE 100 index lost 0.9 per cent, pushed down by rate-sensitive banks, industrials and utility stocks on mounting investor concerns about public finances.
The UK’s 30-year borrowing costs rose to 5.72 per cent, their highest levels in over 27 years, while sterling slid more than 1.5 per cent amid investor anxiety about the UK’s ability to get its finances under control.
NatWest, Barclays and Lloyds were down about 2 per cent each. Utility stocks fell, with SSE losing 3.7 per cent. Insurers Legal & General and Phoenix fell over 4 per cent each.
Retailers and consumer groups such as Tesco, M & S and British American Tobacco also closed weaker.
EUROPE
Yields on 30-year German bonds hit their highest since 2011, while their French counterparts hit their highest since 2009. France’s far-right National Rally is preparing for the possibility of snap elections, having said on Monday that it would bring down the minority government in a September 8th confidence vote.
As almost all sectors traded in the red, the region-wide luxury index was the only exception. Luxury stocks as a sector added 0.5 per cent as fashion giants Kering and LVMH were both upgraded by HSBC to buy.
Among individual stocks, Swiss food giant Nestlé dipped 0.7 per cent after chief executive Laurent Freixe was removed for failing to disclose a romantic relationship with a subordinate.
Ferrari rose 1.9 per cent as Deutsche Bank raised its rating on the sports car maker to buy.
Meanwhile, data showed euro zone inflation rose 2.1 per cent in August on an annual basis, staying close to the European Central Bank’s 2 per cent target and firming up bets the central bank will keep rates steady in the following meeting next week.
NEW YORK
Wall Street’s main indices were lower in early afternoon trading, as investors returning from a long holiday weekend confronted fresh uncertainty over the legality of president Donald Trump’s tariffs.
A divided US appeals court ruled on Friday that most of Trump’s tariffs are illegal, but allowed the levies to stay in place until October 14th. The Trump administration can still file an appeal with the supreme court, and is expected to do so.
Most S&P 500 sectors traded in the red, with tech stocks the biggest drags. Nvidia, Apple and Microsoft were all lower.
Conversely, PepsiCo gained after Elliott Management disclosed a $4 billion (€3.43 billion) stake in the beverages giant and launched an activist campaign.
Kraft Heinz fell on news the packaged goods giant will split into two listed companies. – Additional reporting, Reuters
