+34
Global stock markets declined on Thursday as investors adopted a risk-averse stance due to surging government borrowing costs. A rally in oil prices triggered a sell-off in sovereign bonds, pushing US bond yields to their highest levels since 2002. In Dublin, the Iseq underperformed with major holdings like Bank of Ireland and Glanbia falling significantly. UK markets were dragged down by banks, with NatWest dropping 6.1 percent after reports of a meeting with the finance minister ahead of the Autumn Budget. Meanwhile, energy stocks advanced as crude oil prices rose.
Equities tumbled across the globe on Thursday with investors turning risk-averse amid soaring Government borrowing costs. A rally in oil prices sparked a fresh sell-off in sovereign bonds, catapulting US bond yields to their highest levels since 2002.
Dublin The Iseq underperformed its European peers, falling by almost 3 per cent as index heavyweights were caught up in the wave of selling that spread through markets. Across the board, financials were weaker, with Bank of Ireland, which traded ex-dividend on Thursday, falling by 3.5 per cent. AIB was off by 3.7 per cent, finishing the session at €11.10 per share. Glanbia tumbled another 5 per cent to €18.66 per share.
The stock, which is still up by more than 36 per cent over 12 months, has faced some selling pressure since Bank of America rated it “underperform” last week. Most of the big names on the index finished in red, with Kerry Group, Ryanair, and Kingspan down by between 1.3 per cent and 2.3 per cent. London UK share indices fell, dragged down by banks as the British government’s 30-year borrowing costs hit highs not seen since the late 1990s.
The benchmark FTSE 100 dropped by 1.7 per cent, while the domestic-focused FTSE 250 shed 1.6 per cent. All the big names in British lending slid, with NatWest sliding by 6.1 per cent. HSBC and Lloyds gave back 4.5 per cent, and Barclays fell by 4.1 per cent.
The falls in UK bank stocks gathered pace after Sky News reported the heads of Britain’s major lenders, including those for Barclays, HSBC and Lloyds, had been summoned to a meeting next week with finance minister John Healey in advance of this month’s budget, as expectations build for possible taxes on banks in the Autumn Budget on October 28th. Energy stocks, meanwhile, advanced, with oil majors Shell and BP ahead by 0.6 per cent and 1.7 per cent, respectively, tracking rises in global crude prices.
Europe Starting the fourth quarter on shaky ground, European shares slid, with the Stoxx 50 down by 1.5 per cent and the cross-Continental Stoxx 600 down by 1.1 per cent. Banks led sectoral losses as investors turned risk-averse, with global Government bond yields hitting multiyear highs. French shares took a hit after the Government unveiled a 2027 budget with €43 billion in cuts and tax increases.
The Cac 40 fell by more than 1.5 per cent, with Paris-listed luxury goods groups Hermes and LVMH falling by around 2 per cent. BNP Paribas tumbled by XX per cent. Its Spanish peers, Santander and BBVA, fell by around 4 per cent, while Dutch lender ING was down by just under 4 per cent. In line with global trends, tech shares were a rare bright spot on European bourses.
German software giant SAP added 1.2 per cent, while chipmakers ASML and Infineon were flat. New York Wall Street’s main indexes slipped on Thursday as a deepening bond sell-off drove US treasury yields to multi-decade highs, outweighing gains in software stocks. Global bond markets came under renewed pressure, with the yield on the benchmark 10-year treasury note touching 5.3445 per cent, its highest since 2002, a day after treasuries logged their worst quarter since 1994.
Technology was a rare area of strength, with software shares rallying on results from Accenture, which climbed 22 per cent after the consulting firm forecast full-year revenue growth above estimates. Rival Cognizant climbed 10 per cent, while blue-chip IBM gained 4.2 per cent. Micron Technology’s better-than-expected revenue forecast and $32 billion customer commitments under its supply agreements reinforced faith in the AI trade. Micron shares, however, slipped about 0.9 per cent after nearly quadrupling this year. – Additional reporting: Bloomberg, Reuters
Stock Market Bond Yields Banking Sector Oil Prices Government Borrowing
Ireland Latest News, Ireland Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
The Evolution and Global Image of Irish WomanhoodA personal cultural essay contrasting the traditional Irishwoman, shaped by domestic expectations and matriarchal suspicion, with the modern international image of Irish women as thoughtful, intellectual and creatively powerful. It explores the influence of women writers such as Edna O'Brien, Sally Rooney, Anne Enright, Claire Keegan and Caroline O'Donoghue in turning Irish female experience into a prominent cultural export.
Read more »
European Shares Fall for First Month in Six Amid Bond Yield SurgeEuropean equity markets posted their first monthly decline in six months, driven by rising global bond yields and cooler-than-expected US inflation data. The Stoxx 600 closed 0.5% lower, reversing earlier gains, as hawkish central bank signals and an oil price surge from geopolitical tensions weighed on investor sentiment.
Read more »
Global bond yields surge amid oil shock and geopolitical tensions, triggering widespread market volatilityA sharp rise in global bond yields, driven by an oil price spike and fears of a prolonged flight to quality, has pushed US, UK and French government yields to their highest levels in nearly 25 years. The surge has jolted equity markets, widened credit spreads and sent shockwaves through Asian markets. Analysts warn that the current volatility could spill over into corporate borrowing costs and fuel inflationary pressures as the market grapples with the Iran conflict‑driven energy shock and expectations of higher U.S. rates.
Read more »
European Commission Opens Infringement Procedure Against Ireland Over Bond Tax ExemptionsThe European Commission has initiated an infringement procedure against Ireland for exempting capital gains on Irish Government bonds from tax while taxing similar gains on other EU sovereign debt at 33 percent. Brussels argues that this favorable treatment violates EU rules on the free movement of capital by discouraging Irish residents from investing in bonds from other member states or EEA countries. The exemption also covers bonds from state-owned entities such as ESB and Bord Gas. Ireland has two months to respond to the formal notice before the case may escalate to the Court of Justice of the European Union.
Read more »