European shares fell to near two-month lows after the European Central Bank (ECB) raised rates again and flagged concerns about higher inflation in the coming months, driven by the Iran war-related energy shock.

Dublin

The Iseq index was little changed, with a big move in Irish Continental Group’s (ICG’s) stock somewhat offsetting weaknesses elsewhere.

The Irish Ferries owner was the most traded stock in Dublin, advancing 6.7 per cent to €7.92 per share after ICG shareholders narrowly voted to back chief executive Eamonn Rothwell’s €1.2 billion management buyout bid for the group.

Meanwhile, the big names on the index struggled for direction. Ryanair dropped 0.6 per cent to €22.46 per share after a significant shareholder revolt at its annual general meeting (AGM) over a pay deal that could yield a €150 million payout for its boss Michael O’Leary.

Rates-sensitive lenders moved higher after the latest ECB interest rate hike. Bank of Ireland advanced by 1.1 per cent to €20.12, while AIB added 0.9 per cent to close at €11.45 per share.

London

British shares hovered near one-month lows, with the benchmark FTSE 100 down by 0.6 per cent and the mid-cap FTSE 250 giving back around 0.8 per cent.

Penneys owner Associated British Foods was the biggest mover, plunging by almost 8 per cent after it forecast a decline in fourth-quarter like-for-like sales at Primark. The group plans to spin off the brand next year.

Meanwhile, both precious and industrial ​metal miners declined, with Rio Tinto and Anglo American down 3.2 per cent and 4.9 per cent, respectively, even ⁠as metal prices gained.

Oil majors Shell and BP advanced 0.8 per cent and 1.4 per cent despite a jump in crude prices.

Among individual stocks, animal genetics company Genus fell 4.9 per cent after its annual adjusted revenue fell short of analysts’ ​consensus estimates.

Kingspan, Kerry Group and Glanbia all finished in red.

Europe

European stocks tumbled after the ECB announced its latest 0.25 percentage point interest rate increase.

While the hike, Frankfurt’s second this year, was widely anticipated, ECB president Christine Lagarde said that policymakers stand ready to further increase rates, citing uncertainty around the outlook for inflation.

Both the blue-chip Stoxx 50 and the pan-European Stoxx 600 indices were down by around 0.5 per cent to 0.6 per cent.

D’Ieteren ​was the top gainer in Stoxx 600, rising nearly 5 per cent, after the Belgian holding group reported higher half-year profit and announced a new chief executive.

Meanwhile, European energy stocks outperformed as oil and gas prices jumped, with Spain’s Iberdrola and Italy’s Eni up by 0.5 per cent to 0.6 per cent. Banking stocks were mixed, with Spain’s Santander and Italy’s Intesa Sanpaolo marginally ahead, while Deutsche Bank and France’s BNP Paribas were down slightly.

New York

Shares on Wall Street slid again as another rally in oil sent stocks and bonds lower, with the latest US inflation data reinforcing bets on an upcoming Federal Reserve interest rate hike.

Declining for a fourth session in a row, the S&P 500 dipped by 0.4 per cent. Meanwhile, the Nasdaq Composite also fell by 0.4 per cent, and the Dow Jones Industrial Average gave back 0.5 per cent.

A US Labour Department report showed that the Producer Price Index (PPI) rose 5.4 per cent in August on an annualised basis, a ​touch higher than the 5.3 per cent economists polled by Reuters had expected. The data comes in advance of tomorrow’s highly anticipated consumer price index.

Oracle, which has struggled this year, fell by 1.7 per cent as it prepared to report earnings after markets close, which will be seen as a bellwether of investor patience for heavy AI spending.

Among individual movers, Apple climbed 1.4 per cent as analysts were generally positive on the company’s new foldable iPhone. Meta Platforms was little changed after an upgrade from JPMorgan Chase. – Additional reporting: Bloomberg, Reuters