Global shares edged higher in choppy trading on Monday while the US dollar fell but still traded near one-year highs as markets pared expectations of future interest-rate cuts by the Federal Reserve.
Dublin
It was a quiet day on the Dublin market as the Iseq closed marginally down 0.02 per cent on Monday. Food suppliers Kerry Group dropped 0.23 per cent to €86.50 on Monday. Glanbia fell 0.41 per cent to finish the day at €14.49. Kingspan fell by 0.14 per cent to €73.40.
Banks rose across the Irish stock market with Bank of Ireland gaining 1.35 per cent to sit at €8.87. AIB advanced by 0.28 per cent to €5.44. Permanent TSB was up by 2.30 per cent to €1.55.
Builders retreated on Monday as Cairn Homes fell 2.99 per cent to €2.11 and Glenveagh Properties dropped 1.51 per cent to €1.56.
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Ryanair fell 0.35 per cent lower on Monday, standing at €18.73.
London
UK’s FTSE 100 closed higher on Monday, with conglomerate Melrose topping the index following an upbeat trading update, while domestically-focused midcaps closed lower as caution prevailed in advance of an inflation report due later in the week.
The export-heavy FTSE 100 index rose 0.57 per cent to a near one-week high, buttressed by a 3.2 per cent jump in precious metal miners as bullion prices rebounded.
Melrose Industries rose 7.6 per cent to levels last seen more than three months ago, after the owner of aerospace parts maker GKN Aerospace reported a jump in revenue over the past four months and said it expects to deliver a surge in free cash flow in 2025.
“Historically, Melrose bought up industrial businesses and executed a buy, improve, sell model – investors will hope the ‘improve’ bit has been retained,” said investment director at AJ Bell Russ Mould.
Europe
European stocks slipped on Monday amid worries about US president-elect Donald Trump’s policies and as traders trimmed the odds of European Central Bank’s rate cuts.
The Stoxx Europe 600 Index closed 0.1 per cent lower, after ending last week with its fourth straight week in the red — the longest losing streak for the index since 2022.
Real estate stocks, retailers and utilities were among the biggest laggards, while higher iron ore levels boosted mining stocks that led the gains in the index.
European stocks have been trending lower since Mr Trump’s election victory, with traders concerned about potential tariffs and other policies under the new administration.
Morgan Stanley strategists led by Marina Zavolock on Monday downgraded their stance on European stocks to neutral.
Traders have also pared back rate-cut bets in Europe, with governing council member Gabriel Makhlouf saying there’s no rush to lower interest rates at a faster pace.
Money markets are betting on 0.29 per cent of European Central Bank rate cuts in December and a 1.38 per cent cut by the end of 2025, slightly lower odds compared to last week.
New York
Wall Street’s main indexes were mixed on Monday, as investors looked ahead to earnings from AI-chip leader Nvidia following a rout the previous week on apprehensions about Mr Trump’s cabinet appointments and the central bank’s policy path.
Results from Nvidia, which reports third-quarter earnings on Wednesday, will be crucial as investors assess if the euphoria around artificial intelligence (AI), responsible for much of the markets’ tech-driven rally this year, can be sustained. Its stock has nearly tripled in value this year.
Nvidia’s shares fell 2.8 per cent after a report said its new AI chips were overheating in servers, weighing on the information technology sector, which lost 0.3 per cent.
Meanwhile, consumer discretionary stocks gained 1.4 per cent after Tesla jumped 7.2 per cent following a report that members of Trump’s transition team were seeking to ease US rules for self-driving cars. The electric vehicle maker’s gains also boosted the tech-heavy Nasdaq.
Shares of Uber and Lyft fell more than 4 per cent each. Most megacaps edged higher, with Alphabet up 0.7 per cent and Apple up 0.6 per cent. — Additional reporting: agencies
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