Global stocks fall on fear of higher interest rates

Stocks fell across the board and Treasury yields jumped on Tuesday as concern grew that central banks will have to raise interest rates sooner than expected.

Dublin

Euronext Dublin ended down 1.6%, slightly underperforming its international peers, dragged down by some of the biggest names in the index.

low cost airline Ryanair and building materials giant HRC led the way losing 2% and 2.1% respectively. Elsewhere, packaging company Kappa Smurf fell by 1.5%, while Kerry Group was down 1.3%.

The only green on the board was in the banks, like BAI and Bank of Ireland climbed 1.3% and 0.8% respectively. “The only thing I can think of is that it’s an interest rate thing,” one trader said. “As interest rates rise, banks have a better chance of being profitable.”

At the same time, in the building trade sector, specialist in insulation Kingspan and Woodie’s parent Grafton Group were also both lower. The same trend was seen among listed home builders, with Glenveagh Properties and Cairn Houses both during the day.

London

The FTSE 100 also ended lower, dragged down by consumer stocks and industrials, while improving UK employment conditions and rising US Treasury yields signaled headwinds. growing bets on tighter monetary policies.

The blue-chip FTSE 100 index fell 0.6% as consumer-focused companies such as Diageo and Unilever and industrial stocks under pressure.

Unilever extended declines from the previous session and lost 4%, near a five-year low, as the company said on Monday it would pursue a deal for GSK’s consumer business, calling it “strong strategic fit”.

THG fell 9.6% after the online retail platform warned that its adjusted core profit margin would fall below market expectations due to unfavorable currency movements.

just group gained 8.2% as the insurer said its retirement income and new business profits rose last year.

Europe

European stocks closed at a one-week low on Tuesday, with tech stocks losing the most on fears over US interest rates. The pan-European Stoxx 600 index fell 1%. Tech stocks fell 2.2%, the most among their peers, as they resumed a wave of losses that began at the start of the year.

Among individual stocks, the Swiss wealth management company GAM Holding fell 16.7% after saying it expected to post a net loss of around 30 million Swiss francs (28.9 million euros) for 2021 when it reports results next month.

french caterer Sodexo rose 1.7% after Reuters reported that Bain Capital was looking to bid for a stake in its benefits and rewards services unit.

Chocolatier Lindt & Spruegli fell 3% after it said sales of its premium chocolates were likely to grow at a slower pace in 2022 than last year due to supply chain bottlenecks.

New York

Major Wall Street indexes fell with Goldman Sachs major declines among banks after posting a quarterly profit below expectations, while big tech stocks were hit by rising Treasury yields.

Goldman’s plunged 7.7% after missing fourth-quarter earnings estimates on weak business activity, dragging the S&P 500 Banks Index down 2.4%.

from google Alphabet, Apple, Meta and Amazon fell between 1.5% and 3.4%.

ActivisionBlizzard jumped 27.1% after Microsoft said it would buy the video game publisher for $68.7 billion (€60.7 million) in cash, the biggest deal in the industry.

Microsoft shares fell 1.7%, while other gaming stocks electronic arts and Interactive Take-Two gained 5.2 and 3.7% respectively.

Airbnb fell 3.3% after Gordon Haskett cut shares of the home rental company to “hold”. (Additional reports: Agencies)

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