Hotter-than-expected inflation data sends US stocks lower

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Iseq index outperforms its European peers, adding 0.75 per cent

Traders work on the floor of the New York Stock Exchange. US inflation data sent shockwaves through equities and bonds markets on Wednesday. Photograph: Michael M. Santiago/Getty Images

Traders in Dublin said the macro outlook around interest rates and inflation was at the forefront of investors’ minds as Irish shares initially sold off following the US numbers before recovering by around 0.5 per cent into the close.Banks were among the biggest movers on the session with Bank of Ireland surging 2.4 per cent to above the €10 per share mark and holding there into closing bell. AIB, meanwhile, moved 0.7 per cent higher to €4.99 per share while PTSB slumped 2.6 per cent to €1.

Personal goods index led sectoral gains, adding 2.8 per cent on a 3.2 per cent rise in Burberry, while supermarket giant Tesco added more than 3 per cent on rising revenues and the announcement of a £1 billion share buyback programme. Bucking the trend, Swiss banking giant UBS fell by almost 3 per cent amid reports the lender will face tougher capital requirements in a bid to prevent a repeat of the Credit Suisse crisis.

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