European stocks mark worst sell-off this year as travel and tech tumble

European stocks tumbled from all-time highs on Tuesday, with the travel, retail and technology sectors among the top losers after global sentiment turned risk-averse on worries about rising inflation in the US.

Wall Street's main indexes slid for the second straight day, with the benchmark S&P 500 hitting a one-month low on fears that rising inflation could push the US Federal Reserve to tighten monetary policy faster than expected.

DUBLIN

The Iseq index was a sea of red on Tuesday as the Dublin market followed other indices lower. It closed down nearly 2.4 per cent at 8124.3.

Among the main fallers were Flutter, down 5 per cent to €155.50 and Ryanair, which plunged 3.2 per cent to €16.75.

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Iseq heavyweight CRH was 2.6 per cent lower at €41.20, while box maker Smurfit Kappa was down 2.27 to €42.41. Also in decline were property-related stocks, with builders Cairn and Glenveagh down 1.6 per cent and 2.7 per cent respectively.

Banks were also down, Bank of Ireland by 1.9 per cent to €5.15 and AIB by 0.43 per cent to €2.55.

Food stocks were the only ones to be spared, with Glanbia rising 2.3 per cent to €13.86 and Total Produce up 0.9 per cent to €2.25. Kerry Group, though, was down 0.8 per cent to €108.70.

LONDON

British stocks clocked their worst day since late October on Tuesday after a sudden drop in big US tech stocks over inflation concerns, while shares of THG Plc eyed their best day on record on raising more than $1 billion (€820 million ) in new equity.

The blue-chip index slid 2.6 per cent, dragged down by heavyweight banks, life insurers and miners. All the Ftse 100 constituents were trading in negative territory. The domestically focused mid-cap Ftse 250 index tripped 2.3 per cent.

Travel and leisure stocks slipped 4 per cent, with Aer Lingus and British Airways owner IAG falling the most, after it launched an €800 million convertible bond due in 2028 to strengthen its balance sheet.

Beauty and lifestyle ecommerce company THG surged 11.7 per cent after it raised more than $1 billion in new equity, including $730 million from Japan's Softbank Group.

NatWest slid 3.5 per cent after the UK government completed a £1.1 billion share sale at a discounted price.

EUROPE

The pan-European Stoxx 600 index fell 2 per cent, its biggest percentage decline since late December. The main bourses in Frankfurt, Paris and London all lost more than 2 per cent.

European technology shares fell 2 per cent to their lowest in six weeks, while mining firms handed back some of the strong gains notched up in the previous session. Travel and leisure stocks slumped 5.7 per cent overall.

Thyssenkrupp tumbled 10.2 per cent as the German conglomerate's closely watched cash flow plunged deeper into the red in the second quarter, hit by restructuring costs and investments.

German minerals group K+S fell 2.7 per cent despite raising its 2021 core profit forecast.

NEW YORK

Wall Street’s main indexes fell for a second straight session, and the S&P 500 hit a one-month low on Tuesday, as investors feared that rising inflation could push the Federal Reserve to tighten monetary policy faster than expected.

The outperformers of 2020, Apple, Amazon, Microsoft, Google-parent Alphabet and Tesla fell 0.8-2.4 per cent, weighing the most on the benchmark index.

Simon Property Group fell 3.4 per cent after the shopping centre operator said it did not expect a return to 2019 occupancy levels until next year or 2023, as it looks to play hardball in rent negotiations with tenants.

L Brands fell 4.6 per cent after the retailer said it would split into two publicly traded companies, Bath & Body Works and Victoria’s Secret, deciding against a sale of its lingerie brand.