European shares hit their highest in over a year on Friday and ended their fourth straight week in the green, buoyed by positive earnings from major US banks.
Dublin
The Irish index of shares closed up half a per cent on Friday, lifted by increases in banking and building stocks.
AIB and Bank of Ireland followed their European counterparts higher, with the latter adding 1.9 per cent over the session to close at €9.68. AIB shares gained 4.24 per cent to finish the week at €3.83.
There was also positive movements in CRH and Kingspan shares. Building materials group CRH closed at €44.70, up almost 1 per cent, while insulation specialist Kingspan was 2.2 per cent higher at €59.40.
Ryanair shares were almost half a per cent higher despite questions over the delivery of some Boeing aircraft that the airline is currently awaiting. The carrier is expecting 24 Boeing 737 8200 Max jets through April, May and June, but Boeing on Friday confirmed that one of its suppliers has told it of a problem with some aircraft that would likely affect a significant number of undelivered 737 Max airplanes. Ryanair’s shares close the week at €14.46.
At the other end of the market Flutter Entertainment lost almost 1.5 per cent to €168.55.
London
The blue-chip FTSE 100 closed 0.4 per cent higher at a one-month high, boosted by banks like HSBC Holdings and Barclays, which tracked investor optimism in the US after three big US lenders reported strong quarterly earnings.
Dechra Pharmaceuticals jumped 33.1 per cent, recording its biggest one-day percentage gain in over two decades after the veterinary pharmaceuticals maker said it had entered into talks with private equity group EQT for a possible offer in a £4.63 billion all-cash deal.
HSBC said its planned sale of its French retail banking business could fail due to capital concerns on part of the buyer. But the lender was up 3.0 per cent with the broader sector.
AO World soared 11.8 per cent after the online electricals retailer said it expected its annual profit to be around the top end of its forecast.
Bucking the trend Superdry tumbled 16.7 per cent after the struggling fashion brand said a potential equity raise of up to 20 per cent was among funding options being considered.
Europe
The pan-European Stoxx 600 closed up 0.6 per cent on Friday, after hitting its highest level since February 2022 earlier in the session. The index gained 1.7 per cent for the week, clocking its longest weekly winning streak so far in 2023.
European banks were the top gainers on the STOXX 600, jumping 3 per cent to hit a one-month high after upbeat first quarter earnings from big banks in the US.
Among major stock moves Hermes rose 1.5 per cent to a new record high after the luxury firm’s first-quarter sales beat market expectations, helped by strong demand from China.
TomTom jumped 7.3 per cent after the Dutch navigation and digital mapping company reported surprise first-quarter profit.
New York
US stock indexes fell on Friday as mixed economic data added to worries that the Federal Reserve will not pause its interest rate hikes soon, while upbeat earnings helped the banking sector emerge as a rare bright spot.
JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co beat analysts’ estimates for first-quarter profit, signalling resilience through the banking crisis in March. JPMorgan’s shares rallied 7.3 per cent, set for its steepest one-day gain in over two years, while Citigroup rose 3.8 per cent.
Among other earnings-driven moves BlackRock rose 2.8 per cent after the world’s largest asset manager beat analysts’ estimates for quarterly profit.
Boeing slid 6 per cent after the plane-maker halted deliveries of some 737 MAXs due to a supplier quality problem by Spirit AeroSystems. Spirit AeroSystems’ shares tumbled 18.5 per cent.
At 11.58am ET, the Dow Jones Industrial Average was down 192.86 points, or 0.57 per cent, at 33,836.83; the S&P 500 was down 17.53 points, or 0.42 per cent, at 4,128.69; and the Nasdaq Composite was down 86.12 points, or 0.71 per cent, at 12,080.15. – Additional reporting: Reuters
