Global stocks struggle to extend gains ahead of key inflation data

Global stocks struggled to extend gains on Tuesday as concerns over softening demand held risk appetite in check ahead of key inflation data expected on Wednesday.
Euronext Dublin outperformed international peers as the index finished the day up 42 basis points.
One of the standout performers was hotel group Dalata, which climbed 1.9 per cent. “They had a tough run towards the end of last week and they are starting to rally now,” a trader noted.
It was a positive day for the food names as well, with Glanbia finishing 4.4 per cent stronger. “They have been weak since publishing numbers the week before last, but rallied into the close,” a trader said. Its peer, Kerry Group, was up 1.3 per cent at close of business.
Housebuilders also enjoyed a strong sessions with Cairn Homes 5 per cent ahead at the close while Glenveagh Properties was 2 per cent firmer. Woodies DIY parent Grafton Group added 0.3 per cent.
Among the financials, Bank of Ireland and AIB were down 66 and 57 basis points respectively, largely in line with the European banking sector.
The FTSE 100 dropped 0.78 per cent in value as it was knocked by a slump in oil prices and a weak session for AstraZeneca.
The drugs giant was hit after it revealed that one of its lung cancer treatments missed targets in recent trials. As a result, shares in the company fell by 2.4 per cent to 12,406p.
Oil majors Shell and BP both dragged on the index after Brent crude oil prices sank to their lowest level since 2021.
On the other hand, Wickes shares strengthened after the home improvements retailer said trading had improved so far in the latest quarter, with design and installation sales “stabilising”. That helped support sentiment around the business despite it reporting a 24.8 per cent slump in pretax profits in the six months to June 29th. Wickes shares closed up 3.3 per cent at 170.6p.
Shopping centre owner Capital & Regional was firmly in the red after a company which had been touted as a potential buyer said it was no longer interested. Praxis Group, also a property firm, said it has “no intention to make an offer” for the group, which runs shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone, Walthamstow and Wood Green. Shares were 7.4 per cent lower at 63.9p.
In Europe, stocks retreated with the auto sector leading losses following BMW’s outlook cut. Investors were also cautious ahead of US inflation data and the European Central Bank’s meeting.
The Stoxx Europe 600 Index dropped 0.5 per cent by the close. The auto sector fell 3.8 per cent to the lowest in almost a year as BMW flagged component supply issues. Energy and banks also declined, while property and food and beverage outperformed.
Capgemini shares jumped after Bank of America analysts upgraded the IT firm to buy from neutral, saying the risk of a guidance reset had played out following a profit warning in July.
Wall Street’s main indices were lower ahead of key inflation data later this week that could provide clarity on the extent of the Federal Reserve’s expected interest rate cut, while a fall in the shares of big banks weighed on the markets.
JPMorgan Chase was down nearly 7 per cent after the bank’s president tempered expectations about its income from interest payments, while Goldman Sachs fell 4.7 per cent following CEO David Solomon’s comments that the lender’s trading revenue will probably slip 10 per cent in the third quarter.
Apple fell 1 per cent after China’s Huawei launched a tri-fold smartphone hours after the debut of a new iPhone. The iPhone maker also lost its fight against an order by EU competition regulators to pay €13 billion in back taxes to Ireland.
Energy stocks were the biggest loser among the S&P 500 sectors, falling to their lowest since February as oil prices dipped on a weaker demand outlook.
Oracle jumped 12.2 per cent after beating estimates for quarterly results and forecast second-quarter revenue growth above expectations, boosted by growing demand for its cloud offerings. – Additional reporting: Agencies