Markets rocked by fears of inflation and further interest rate hikes – The Irish Times

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European stocks fell on Thursday as the Bank of England’s bond-buying plan to appease troubled markets crumbled, while dismal inflation data from Germany stoked fears over the soaring prices and aggressive central bank action.

In the United States, Wall Street fell on fears of a global economic slowdown due to aggressive central bank policy and fears that a rout in global currency and debt markets could affect equities. .

Dublin

The Iseq fell sharply, ending the session down 3.3%.

The big banks helped drag it down. Bank of Ireland fell more than 6.4% to €6.26, after the Central Bank fined it more than 100 million euros for its handling of the mortgage scandal. The other banks were also in the red. BAI fell 3% to €2.32, while permanent TSB fell more than 6.7% to €1.52.

It was also a tough day for travel-related stocks as investors worried about consumer spending. Dalatathe state’s largest hotel group, fell 5.1% to €2.78, while Ryanair was down 3.6 percent at €10.46.

London

London shares fell on widespread losses, with the mid-cap index plunging 3.1%, as concerns over the fallout from the UK government’s new economic plan continued to rock markets. The blue chip index lost 1.8 percent as banks and consumer staples weighed. It is set for its third straight weekly drop.

Shares of Next fell 12.2% after cutting its profit and sales forecast, while British American Tobacco fell 3.6% in ex-dividend transactions. Synthomere fell 35% after lowering its full-year earnings outlook.

Shares in Mitchells and Butlers slipped after the pub and bar giant warned of sales being disrupted by the summer heatwave and rail strikes. The owner of All Bar One said cost inflation had put pressure on margins, but it was still showing sales growth after the last quarter. Its stock price was down almost 15% at the end of the day.

Europe

Almost all of Stoxx’s sectors were in the red, with retailers losing 4.4% as the world’s second-largest fashion chain, the Swedish group H&Mfell 5.9% after weaker than expected profits

Germany’s Dax index fell 1.7% as data showed inflation in Europe’s biggest economy jumped more than expected in September to a 10.9% rise on the year – its highest level in more than 25 years, driven by rising energy prices.

Luxury stocks on the Stoxx 600 were in the red with LVMH down 0.9%.

volkswagen and Porsche SE collapsed as investors turned to Porsche AG the share, which made a good start with a peak of €86.76.

New York

The Nasdaq fell 3% on losses in megacap growth names such as Amazon, Apple, Microsoft, Metaplatforms and You’re here. They were down between 3.09% and 6.25%.

The S&P 500 slipped to its lowest level since November 30, 2020 and was now set for a monthly decline of almost 8%.

All 11 S&P 500 sector indices fell 1% to 3%, with consumer discretionary leading the fall as auto stocks slumped.

CarMax fell 23.72% after the used-car retailer missed expectations for second-quarter results, hurt by reduced consumer spending amid inflation, rising interest rates and rising car prices. General Motors and Ford engine also took a hit, losing around 5.5% each.

Airline carriers and cruise operators canceled or delayed trips after Hurricane Ian hit Florida’s Gulf Coast with catastrophic force. American airlines fell 4.3%, while United Airlines Holdings, South West Airlines and Delta Airlines between 2.3% and 3.9%. Cruise lines Norwegian Cruise Line Holdings and Carnival fell 4.3% and 5.7%, respectively. — Additional reports: Reuters/PA

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