Global stocks were in a holding pattern on Monday in advance of key earnings reports from some of the world’s biggest names this week as well as closely watched US economic data.
A spate of housing data, industrial output, the US Commerce Department’s first estimate of first-quarter GDP will be capped on Friday by the closely watched and wide-ranging Personal Consumption Expenditures (PCE) report, which tracks income, spending and inflation.
DUBLIN
Another quiet session in Dublin saw the Iseq index add less than 0.1 per cent on what was another mixed day for the bigger names.
The biggest mover on the day was Permanent TSB, which added 2.9 per cent to close at €2.45. AIB gained more than 1 per cent to €3.95 per share, while Bank of Ireland added less than 0.3 per cent to close at €9.66.
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After Citigroup upgraded its outlook for rival Wizz Air’s shares, Ryanair was up by close to 0.9 per cent to €14.94 per share on relatively high volumes, helping to buoy the index. Building materials giant CRH added 0.7 per cent to €45.26 in advance of a trading update on Wednesday.
Shares in Flutter, meanwhile, shed more than 0.8 per cent to €178, with the Paddy Power owner set to publish an update of its own next week.
LONDON
London’s main equities indices were flat on Monday, with the blue-chip FTSE 100 finishing the day almost exactly where it began while the mid-cap FTSE 250 fell by just over 0.1 per cent.
Commodities were a mixed bag to start the week, with oil majors BP and Shell up 0.7 per cent and 0.3 per cent respectively while industrial miners fell. Anglo American, off by 1.6 per cent, led the downside move, with Glencore down 0.9 per cent and Antofagasta down by more than 0.8 per cent.
Airlines fell amid reports that IAG could face a lengthy EU competition investigation over its proposed acquisition of Spanish carrier Air Europe, with the Aer Lingus owner off by 0.9 per cent. Shares in EasyJet, meanwhile, fell by more than 1 per cent while residential property stocks took a hit after data showed UK house prices saw weak growth in April.
EUROPE
European stocks trod water at the start of a busy week for potentially market-moving earnings reports. Both the cross-Continent Stoxx 600 index and the blue-chip Stoxx 50 were flat on the session as were the German Dax and French Cac40 indices.
Credit Suisse was among the most noteworthy European names on the earnings docket after the Swiss authorities engineered UBS’s takeover of the troubled Swiss lender last month. Shares in the bank were marginally higher at the close despite reporting 61.2 billion Swiss francs (€64 billion) in client outflows in the first quarter before its near-collapse.
Shares in Dutch health tech company Phillips climbed more than 13 per cent, meanwhile, after it reported better-than-expected first-quarter results.
Separately, shares in luxury giant LVMH jumped 0.1 per cent after it became the first European company to hit a milestone $500 billion market capitalisation off the back of strong first-quarter revenue growth of 17 per cent.
NEW YORK
The Nasdaq led Wall Street losses on Monday as Tesla shares came under pressure on the company’s plans to increase spending, while investors awaited results from megacap companies and key economic data this week. By closing bell in Dublin, the tech-heavy index had shed more than 0.8 per cent, with the Dow Jones Industrial Average off by 0.1 per cent and the S&P 500 down 0.3 per cent.
Tesla dropped 3.4 per cent after the automaker raised its capital expenditure forecast for 2023 to ramp up output, weighing down consumer discretionary stocks.
Alphabet, Microsoft, Amazon and Meta, which constitute more than 14 per cent of the value of the benchmark S&P 500, are scheduled to report results this week.
A rally in these stocks has supported Wall Street this year, and investors are waiting to see if the gains can continue amid a gloomy economic outlook.
First Republic Bank gained 6.3 per cent in advance of its quarterly report. The regional bank’s shares have sunk 88 per cent this year, triggered by the US banking crisis.
– Additional reporting: Bloomberg, Reuters, PA
