World stocks retreat from record highs on inflation concerns

World stock indexes retreated from record highs on Tuesday as a solid rise in producer prices last month deepened concerns over inflation, while US Treasury yields edged lower.

DUBLIN

Euronext Dublin was down 0.33 per cent on Tuesday, which was largely in line with its international peers.

It was a bad day for the banks as AIB was down 3 per cent, while Bank of Ireland also lost some ground.

Budget airline Ryanair and Paddy Power Betfair-parent Flutter Entertainment were also down but largely in line with the market.

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The index was kept largely flat by the food groups Glanbia and Kerry Group, which were up 3 per cent and 1.5 per cent respectively. Building materials group CRH – a bellwether for the index and its biggest name – was flat on the day.

“They sort of negated the weakness of the others,” noted a trader. “The market is still trying to make up its mind at the moment. People are trying to make up their minds what they want to do.”

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LONDON

The FTSE 100 erased early gains to end lower, weighed by weakness in banks and mining stocks, while positive earnings outlook lifted shares of Primark owner AB Foods.

After rising as much as 0.19 per cent, the FTSE 100 index ended 0.4 per cent lower, as the banking sector fell 1.3 per cent, with HSBC, Barclays and Lloyds all down about 1 per cent.

On the bright side, AB Foods jumped 8.1 per cent to the top of the blue-chip index after it forecast a significant increase in sales and profit at its Primark fashion chain in the new financial year and announced a special dividend.

Rolls Royce jumped 3.6 per cent to over a two-month high after Britain committed £210 million (€245m) to help it build the country's first small modular nuclear reactor as part of its drive to reach net zero carbon emissions.

Meanwhile, miners including BHP Group, Anglo American and Glencore were down between 1.3 per cent and 1.4 per cent and among the top drags on the blue-chip index.

EUROPE

European shares retreated from record highs, although strong corporate earnings and hopes of a recovery kept losses limited as investors awaited fresh cues from economic data due this week.

The pan-European Stoxx 600 closed 0.2 per cent lower at 482.71 points, holding just below its record peak hit last week.

Insurers were among the biggest drags on continental European markets, falling 0.8 per cent. German group Munich Re fell 2.5 per cent after warning of more Covid-related losses in its reinsurance business.

British insurer Direct Line also slipped 4.2 per cent after reporting lower-than-expected growth in quarterly premiums.

Renault rose 3.8 per cent to the top of France's CAC 40 after its Japanese partner Nissan reported a quarterly profit and hiked its full-year forecast.

Among gainers, German agriculture and pharmaceutical firm Bayer climbed 1.5 per cent after posting higher quarterly adjusted earnings that beat analysts' forecasts.

French supermarket group Carrefour rose 2.9 per cent after pledging €3 billion between 2022 and 2026 for its digital push.

NEW YORK

Wall Street's main indexes also retreated from record highs as a solid rise in producer prices last month deepened concerns over inflation, while General Electric jumped on its plan to split into three public companies.

Seven of the 11 major S&P 500 sector indexes were lower in afternoon trading, after the benchmark US stock index and the Nasdaq notched record closing highs on Monday for the eighth straight session.

Among the top performers on Tuesday, General Electric jumped 3.6 per cent after the US conglomerate said it would split itself into three companies focused on aviation, healthcare and power.

Tesla tumbled 10.2 per cent, pulling down the consumer discretionary sector and extending losses after chief executive Elon Musk's Twitter poll proposing to sell a tenth of his holdings garnered a 57.9 per cent vote in favour of the sale. (Additional reporting: Agencies)