Paddy Power slumps on regulatory fears

PADDY Power Betfair was the big mover on the Irish stock exchange yesterday, down 3.77pc on concerns the British government will cap betting on so called fixed odds betting terminals (FOBT) at £2 a turn.

The betting machines can currently be used to bet as much as £100 every 20 seconds. Shares in William Hill and Ladbrokes Coral owner GVC also fell after ‘The Times’ in London reported the change.

Elsewhere, Wall Street dropped sharply as concerns over marquee companies warning of higher costs were exacerbated by the benchmark US 10-year Treasury yield piercing the 3pc level for the first time in four years.

Google-parent Alphabet sank 4.9pc, erasing all its gains for the year, as investors focused on the company’s rising expenses and shrinking margins rather than a profit beat.

Industrial heavyweight Caterpillar sank 6.6pc after it warned of the impact of steel price hikes on its business.

The stock had gained as much as 4.6pc earlier on a strong set of quarterly results and full-year outlook.

The 10-year yield, a benchmark for global borrowing costs, has been driven steadily higher by a combination of concerns over inflation, growing debt supply, and rising borrowing costs.

While industrial stocks hit the Dow, the Nasdaq was pulled down by a sharp drop in the ‘FAANG’ group of technology stocks.

Facebook, which reports results today, fell 3.6pc after a report that the social network hosted stolen identities and social security numbers.

Apple was down 1.7pc, falling for the fifth straight session. Amazon and Netflix also fell.

European shares were steadier.