Global markets dip as investors eye US election

Global markets dipped on Tuesday as investors took a risk-averse approach amid uncertainty ahead of the US presidential election and the outlook on interest rate cuts.
The Iseq Overall Index was largely flat on the day but it outperformed most peers on what was a muted day on the stock markets.
Insulation specialist Kingspan was the main laggard in Dublin, dipping 1.2 per cent. Elsewhere, budget airline Ryanair was one of the better performers, as it climbed 0.5 per cent.
Among the financial names, Bank of Ireland was flat on the day, while AIB rose 0.3 per cent. Shares in PTSB were up 4.9 per cent to €1.60.
Meanwhile, shares in healthcare services group Uniphar were up 2 per cent to €2.55 at the closing bell, while investors in Datalex were down 4.3 per cent to 36 cents per share.
There was bad news for insurer FBD too, which sank 2 per cent to €12.50.
The FTSE 100 fell 0.14 per cent, recovering most of its early losses after the International Monetary Fund hiked its prediction for UK economic growth.
The FTSE fell in early trading, but recovered later in the day as the IMF’s updated outlook for the UK said drops in inflation and interest rates will help drive spending.
The organisation’s top economist also cautioned that the UK and other countries must tread a “narrow path” in efforts to reduce debt ahead of next week’s budget, amid speculation the chancellor could make changes to UK fiscal rules.
It came as the financial agency held its forecasts for the global economy broadly steady and declared that the battle against inflation has “largely been won”.
Among stocks, HSBC unveiled an overhaul of its global structure as new boss Georges Elhedery seeks to reduce costs and focus on the bank’s strongest divisions.
The bank said it is simplifying operations by splitting into four key units, and geographically into east and west. It also announced the appointment of the first woman finance chief in the bank’s history.
The simplification plans include merging its commercial and institutional banking operations, and creating a new international wealth and premier banking division. Shares rose 0.9 per cent.
Meanwhile, Halfords cautioned that uncertainty about the economy and upcoming tax changes mean consumers are still holding back from making costlier purchases.
Sales dipped 0.1 per cent over the six months to September 27th, compared with the same period a year ago.
However, investors still cheered the performance, as it came against a backdrop of significantly stronger demand during 2023.
The retailer also revealed there were signs of consumer sentiment improving despite people still spending cautiously. Shares rose 10.7 per cent for the day.
On the Continent, the pan-European Stoxx 600 index finished down 0.18 per cent, while MSCI’s gauge of stocks across the globe fell 0.41 per cent.
At the end of the day in Europe, Frankfurt’s Dax index was down 0.15 per cent, while the Cac 40 in Paris had dropped 0.02 per cent.
US stock indexes slipped as rising Treasury yields impacted rate-sensitive sectors, while investors continued to evaluate earnings to assess the health of American companies.
GE Aerospace slumped 7.8 per cent despite raising its profit forecast for 2024, as persistent supply constraints impacted its revenue. It pulled the broader Industrials index 1.2 per cent lower.
The Dow Jones Industrial Average fell 0.19 per cent; the S&P 500 lost 0.29 per cent; and the Nasdaq Composite lost 0.17 per cent.
Rate-sensitive megacap stocks slipped, with Apple falling 0.9 per cent and Nvidia down 0.44 per cent, weighing on the broader technology sector, which lost 0.2 per cent. Microsoft, however, jumped 1.9 per cent, bucking broader sector weakness.
Among other earnings, Verizon lost 4.5 per cent as the telecom giant missed estimates for third-quarter revenue.
Meanwhile, General Motors leapt 9.1 per cent after the legacy carmaker’s third-quarter results beat Wall Street estimates, while Lockheed Martin dipped 5.2 per cent after results. – Additional reporting: Agencies