European stocks headed for their longest run without gains in two months, slipping further on Wednesday, as investors speculated on whether the Federal Reserve will raise interest rates as soon as next month, earlier than expected.
Stocks around the globe turned lower as investors sold equities ahead of the release of minutes from the Fed’s July meeting.
DUBLIN
The Iseq index closed up 0.1 per cent on a day of thin volumes and few big moves for its key stocks.
Glanbia added 2.3 per cent after the food group published first-half results that were in line with consensus forecasts. The company reiterated its guidance on full-year earnings per share growth of 8-10 per cent, while analysts at Merrion Stockbrokers highlighted a better-than-expected performance on margins. Its shares closed at €17.93.
Building materials group CRH rose 0.9 per cent to €29.32, while on its primary listing in London, it also climbed 0.9 per cent, becoming one of the top gainers on the FTSE 100.
Ryanair fell 0.7 per cent to €11.84, extending Tuesday’s losses, while paper and packaging group Smurfit Kappa dropped 1.5 per cent to €21, and insulation maker Kingspan was down 1.6 per cent at €22.35.
LONDON
A slump for car insurer Admiral dragged the FTSE 100 index down from the 14-month highs it hit on Wednesday, after the company said market volatility caused by Britain’s vote to leave the EU had hit its solvency ratio. Shares in Admiral, which missed analyst estimates with its results, fell 7.7 per cent, their biggest fall since November 2011.
The stock was the big loser on the index of blue-chip stocks, which closed down 0.5 per cent, extending Tuesday losses. The mid-cap FTSE 250 was down just 0.3 per cent.
Pharmaceutical company Indivior, which specialises in treatment for opioid addiction, surged 8.8 per cent to close at an all-time high after its drug for opioid use disorder passed its latest clinical trials.
Infrastructure firm Balfour Beatty rose 3 per cent after beating first-half expectations and resuming dividend payouts. It said there was little sign yet of the Brexit vote affecting its markets, but that it was too soon to know how the decision would eventually play out.
EUROPE
The Stoxx Europe 600 Index declined 0.8 per cent, with miners leading declines amid weak commodity prices. In Germany, the Dax closed down 1.3 per cent, while in Paris, the Cac 40 index declined almost 1 per cent.
German gas supplier Linde fell 2.8 per cent, leading declines among chemical shares, as analysts at Citigroup said that a potential tie-up with US peer Praxair would face tough regulatory hurdles.
Dutch company ASML Holding lost 4.7 per cent after Intel said it won't use the semiconductor-equipment maker's lithography technology to make its 10-nanometer chips. Dutch bank ABN Amro rose 2.8 per cent after posting a better-than-estimated second-quarter profit.
Finnair slipped 7.6 per cent after the carrier scaled back plans to add flights this year as terrorism in Europe hurt demand for travel.
Carlsberg slid 5.2 per cent after the Danish brewer reported a first-half profit that missed analysts' estimates as the weakness of Russia's ruble eroded earnings.
Wienerberger retreated 6.2 per cent after the world’s biggest maker of bricks said it has had to cut production of clay products in the UK as demand slowed in the run-up to the Brexit referendum.
US
Stocks fell on Wall Street in early trading as investors waited on the minutes of the Federal Reserve July meeting.
Poor results from big retailers Target and Lowe’s dented investor sentiment. Shares of both the companies were down about 6.5 per cent after they cut full-year earnings forecasts.
Cisco fell 1.6 per cent to $30.62 after technology news site CRN reported the company is laying off about 14,000 employees or 20 per cent of its global workforce.
Philadelphia-headquartered fashion retailer Urban Outfitters was a bright spot, surging 16 per cent after its results exceeded analysts' forecasts.
The possibility of the Fed tightening monetary policy sooner rather than later helped the US dollar rebound against other major currencies. Traders took profits on Tuesday’s gains in the euro, yen and Swiss franc, which each touched seven-week highs.
– Additional reporting: Reuters / Bloomberg
