July 14, 2024
Business

Global market slump wipes €2.5bn off Irish stocks

A GLOBAL stock market slump wiped €2.5 billion off Irish stocks in just one day, promoting fears that the remarkable decade-long equity bull run is finally coming to an end.

Ireland’s main stock index fell 3.11% yesterday as markets across the world tumbled.

A 2.5% drop in the US S&P 500 saw the benchmark index erase its gains for the year, while the Nasdaq weakened 1.9%and the Dow Jones Industrial Average shed 2.7%, before closing down 0.3%t. The S&P and Nasdaq both ended the day down 0.4%.

The sell-off sent investors scrambling for safer assets such as highly rated government debt.

MUFG analyst Chris Rupkey said: “The stock market is signalling a recession is on the horizon, a recession that is man-made, with two back-to-back trading days of heavy losses that has sent investors running for the exits.”

Kingspan was the worst hit of the Irish stocks yesterday, down 6.57%.  Heavyweights CRH, Ryanair, AIB and Bank of Ireland were also down.

The Iseq Overall index has fallen almost 22% so far this year.

Investors are blaming the “man-made” slump on rising interest rates and ongoing US-China trade war tensions.

 

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