Ryanair losses drag on Irish index as global markets continue new year’s slump

Global stock markets extended a new year slide on Wednesday as questions regarding interest rate directions in 2024 and concerns about hostilities in the Middle East weighed on market sentiment.

Dublin’s Iseq All Share Index fell in line with European peers, with Ryanair seeing the biggest drop on the day in the wake of news that a number of online travel agents stopped selling flights with the airline last month.

Dublin

Euronext Dublin was down 1.07 per cent on Wednesday, to close at 8,646.28.

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It was a positive day for the Irish banks, led by AIB, which gained 1.27 per cent to close at €3.99. Bank of Ireland rose by 0.02 per cent to close at €8.50, and Permanent TSB rose 0.28 per cent to close at €1.78.

Among the two home builders listed on the Irish Stock Exchange, Cairn Homes fell by 1.21 per cent to €1.31, while Glenveagh Properties closed at €1.23 after gaining 0.16 per cent. Meanwhile, building materials company Kingspan fell by 3.18 per cent to close at €74.96.

Paddy Power parent company Flutter Entertainment gained on the day, rising 0.41 per cent to €158.90, while packaging company Smurfit Kappa rose by 1.31 per cent to €35.70.

Budget airline Ryanair saw shares fall by 4.92 per cent, to €18.19, on news that a number of online travel agents stopped selling Ryanair flights in early December following legal and regulatory pressure.

Food company Kerry Group saw shares rise by 0.80 per cent to €78.02, while peer Glanbia fell by 2.73 per cent to €14.61.

London

The export-heavy FTSE 100 Index was down 0.51 per cent by close on Wednesday, while the FTSE Mid Cap 250 Index lost 0.95 per cent.

Industry data showed that Sainsbury’s and Tesco were the biggest winners among British supermarkets at Christmas, as shares of the supermarkets gained 1.51 per cent and 1.40 per cent respectively.

Sports betting company Entain jumped to the top of the FTSE 100 early in the day after the company announced the appointment of Eminence Capital founder Ricky Sandler as a non-executive director on its board, but was down 0.30 per cent by close.

GSK gained 2.42 per cent after Jefferies upgraded the stock to “buy” from “hold,” and hiked its price target.

Europe

The pan-European Stoxx 600 Index fell by 0.92 per cent on Wednesday, while the French CAC 40 Index was down 1.58 per cent and the German DAX Index fell by 1.38 per cent.

A weak start to the year is eroding a 12.7 per cent jump in the benchmark STOXX 600 index in 2023, which was propelled by expectations that the European Central Bank (ECB) would deliver rate cuts in 2024.

Analysts expect the ECB to cut rates the soonest in light of economic weakness, followed by the Bank of England, and then the US Federal Reserve.

Computer chip equipment maker ASML fell 2.85 per cent, down for the second day, following the Dutch government’s partial revoking of an export licence for some China shipments.

Maersk rose 5.11 per cent after Goldman Sachs upgraded the shipping company’s stock rating to “neutral” from “sell”, citing a boost from rising freight rates amid disruptions at the Red Sea.

Food and beverages shares rose, led by a 1.73 per cent gain for Swiss packaged-food giant Nestle.

Healthcare also saw a boost on the day, with Swiss drugmakers Novartis and Roche jumping 4.43 per cent and 3.01 per cent, respectively.

New York

The US’s three main indices fell on Wednesday, as investors awaited the Federal Reserve’s December meeting minutes that could offer hints on its interest rate path.

Shares of rate-sensitive megacap stocks extended losses on Wednesday, with Nvidia, Apple and Tesla all down on the day.

US Labor Department data released earlier in the day confirmed that labour market conditions are gradually easing, as job openings dropped by 62,000 to 8.79 million for the third straight month in November.

Verizon Communications rose after KeyBanc upgraded the stock to “overweight”, while Charles Schwab and Blackstone dropped after Goldman Sachs downgraded the stocks to “neutral” from “buy”.

SentinelOne shares fell as the cybersecurity firm announced plans to acquire Indian cloud security firm PingSafe to expand its cloud capabilities in a cash-and-stock deal.

Additional reporting from Reuters.

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