Global shares slide as Biden bans Russian oil and gas imports

Global share markets slid lower on Tuesday as oil remained near record highs and the prospect of a US ban on Russian oil imports stoked volatility and fears of stagflation.

DUBLIN

Euronext Dublin finished the day down 2.5 per cent after a volatile day of trading that saw a number of the index’s heavy hitters suffer losses.

Building materials company CRH was down 2.7 per cent, while packaging company Smurfit Kappa shed 1.5 per cent. "The fact that those two were so weak dragged down the index," said a trader.

Also among the weaker performers was Kerry Group, which finished the day down 6.5 per cent, while Paddy Power Betfair parent Flutter Entertainment was down 2.5 per cent.

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Meanwhile, budget airline Ryanair ended the day down 0.5 per cent. "Ryanair definitely underperformed all the other airlines for whatever reason," a trader noted.

Among the standout performers was Glenveagh Properties which finished the day up 2 per cent after it said it earned pre-tax profits of €45.7 million last year, turning around a €15.7 million loss in 2020. Another house builder, Cairn Homes, finished the day up 1.5 per cent.

Elsewhere, agri-business group Origin Enterprises was up 9 per cent after it reported that revenue rose by more than 53 per cent in the first half of its financial year as price increases in feed and fertiliser boosted figures.

LONDON

The FTSE 100 edged higher, aided by strong gains in energy stocks as oil prices jumped after Britain and the United States announced Russian crude import bans, while insurer and asset manager M&G was the top index gainer on a share buyback programme.

The blue-chip FTSE 100 rose 0.1 per cent, with Shell and BP the top boosts to the index.

The FTSE 100 has dropped 5.7 per cent so far this year, the least among developed markets in Europe and the US, primarily on support from strong oil stocks. However, the surge in energy prices has raised inflation and economic growth fears.

Energy stocks rose 3.5 per cent, a day after recording their best session since January 2021; energy is the top-gaining UK sub-index so far this year, up 21.7 per cent.

Among individual stocks, M&G gained 15 per cent after the insurer and asset manager said it would offer shareholders a £500 million buyback programme.

British baker and fast food chain Greggs fell 3.4 per cent after it warned the surging cost of raw materials, energy and staff would limit any material profit growth in 2022.

EUROPE

European shares slipped as the US ban on Russian oil imports raised volatility and fears of global stagflation, and offsetting a recovery in financial stocks.

The region-wide Stoxx 600 index ended a choppy session down 0.5 per cent, with technology, healthcare and the materials sector weighing.

The German DAX was flat, while the bank-heavy indices of Spain and Italy outperformed, rising 1.8 per cent and 0.8 per cent, respectively. The DAX and Italy’s MIB were confirmed as being in a bear market, or a decline of 20 per cent or more from the most recent highs.

Telecom Italia gained 5.9 per cent after an Italian newspaper reported that US fund KKR was still interested in a takeover, albeit at a lower price.

NEW YORK

US stocks turned higher in choppy trading as investors weighed the latest developments in the war in Ukraine. The dollar erased gains and Treasury yields rose.

The S&P 500 jumped more than 1 per cent shortly after noon in New York, continuing a volatile session that has seen stocks fall as much as 1 per cent.

Headlines related to the war and the associated financial sanctions on Russia have whipsawed financial markets for nearly two weeks.

The sanctions and war have roiled commodities, sending oil surging along with materials from nickel to wheat. That is complicating the task for policy makers, who face a delicate balancing act in tightening to curb inflation without killing the economic recovery. – Additional reporting: Agencies