Stocks fall and bond yields jump following Fed comments

Stocks on global indices were lower on Tuesday, while US treasury yields rose to multiyear highs as comments from Federal Reserve governor Lael Brainard put investor focus on the possibility of aggressive monetary policy tightening.

DUBLIN

Euronext Dublin finished down just over 1 per cent on what was a muted day for the index. The banks gave up some of their recent ground, as Bank of Ireland finished the day down 4 per cent, while AIB saw its stock fall 3 per cent.

The airlines also underperformed, with Ryanair and Easyjet each down 2 per cent at the close of business.

On the more positive side,Kerry Group was up 1 per cent, although its peer, Glanbia, was weaker by the same amount.

European stocks set for biggest quarterly drop since 2020

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Window closes on European markets’ worst trading quarter in two years

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“Volumes were below average across the board, and the market spent the day treading water, slightly weaker,” said a trader.

LONDON

The FTSE 100 index edged higher, powered by healthcare and utility stocks, while investors closely tracked the prospect of more Western sanctions against Russia over the war in Ukraine.

The blue-chip index closed 0.7 per cent higher, with drugmakers AstraZeneca and GlaxoSmithKline rising 1.9 per cent and 3.1 per cent respectively to provide the biggest boost to the index.

Stocks were subdued in early trading, dragged down by heavyweight miners and homebuilders. But by close the mining index recouped losses to end 1 per cent higher.

The domestically focussed mid-cap FTSE 250 index edged 0.1 per cent, though shares of cybersecurity company Darktrace dropped 5.9 per cent after JP Morgan started its coverage with an "underweight" rating.

Telecoms group Vodafone slipped 0.4 per cent as Berenberg downgraded the stock to "hold" from "buy", while Lloyds Banking Group slid 1.2 per cent after Barclays cut it to "equal weight".

Go-Ahead rose 2.3 per cent as the transport operator plans to expand its operations and reinstate its pre-Covid-19 dividend policy after a months-long strategic review.

EUROPE

European equities inched out muted gains as commodities-linked sectors advanced while French stocks slipped amid investor concerns after the latest election poll showed a tighter-than-expected presidential race.

The Stoxx Europe 600 index added 0.2 per cent by the close, with utilities, miners and energy sectors outperforming.

France’s CAC 40 Index in the meantime was 1.3 per cent lower, lagging behind most major peers, on worries over potential political instability as far-right candidate Marine Le Pen looks likely to make it to the April 24th runoff against Emmanuel Macron.

French stocks with a significant exposure to the French economy such as Societe Generale and BNP Paribas were among the biggest laggards, while construction and toll road operator Vinci also dropped. Le Pen has pledged to re-nationalise highways if elected.

NEW YORK

Wall Street’s main indexes fell after US Federal Reserve governor Lael Brainard said she expects rapid reductions to the central bank’s balance sheet, spooking investors already on edge about the prospect of fresh sanctions on Russia.

The tech-heavy Nasdaq led losses as expectations of quicker interest rate hikes dulled the appeal for high-growth stocks. Amazon.com, Apple, and Nvidia fell between 1.4 per cent and 3.8 per cent.

Six of the 11 major S&P 500 sectors advanced in mid-day trading, with utilities stocks hitting a new record high. Technology and consumer discretionary shares fell more than 1.5 per cent each, offsetting gains.

Micro-blogging site Twitter gained 4.5 per cent, adding to its 27 per cent surge in the previous session, after saying it will add top shareholder and Tesla CEO Elon Musk to its board.

Carnival rose 3.4 per cent after the cruise operator reported its highest booking week in its history, boosting peers Norwegian Cruise Line Holdings and Royal Caribbean Cruises 1.2 per cent and 0.6 per cent, respectively. – Additional reporting: Agencies