European and US shares advanced at the start of a busy week on the corporate earnings and policy fronts, with the European Central Bank’s governing council set to meet on Wednesday and Thursday.
On Wall Street, the main indices hit record highs on big gains from megacap stocks.
DUBLIN
Outperforming many European indices, the ISEQ closed up 1.3 per cent on Monday, led higher by a surge in Ryanair’s shares.
The airline advanced by 5.7 per cent to €24.44 per share after reporting that its profits more than doubled to €820 million in the three months to the end of June. Ryanair chief executive Michael O’Leary said the carrier’s fares had benefited substantially from having a full Easter holiday in April.
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Bank shares were mixed, with AIB edging slightly higher to €6.58 per share while Bank of Ireland dipped by 0.3 per cent to €11.81 per share.
Shares in hotel group Dalata slid 0.3 per cent to €6.37 per share.
LONDON
UK shares inched higher, supported by industrial miners that jumped on hopes of stimulus from China. The benchmark FTSE 100 index closed up by 0.2 per cent, and the domestic-focused FTSE 250 added 0.5 per cent.
Led by Antofagasta, which jumped 4.7 per cent, mining stocks were among the biggest gainers on the session. Anglo American jumped 3.3 per cent, with Glencore advancing by 3 per cent and Rio Tinto adding 2.7 per cent.
The move came on foot of China’s promise to stabilise its industrial growth, and on hopes for more stimulus from the world’s largest commodity consumer.
BP rose 0.26 per cent after naming former CRH chief executive Albert Manifold as its next chairman. Activist Elliot Investment Management said it would work with the Irishman to “urgently” address shortcomings at the oil major.
Banks ended the day well. NatWest finished 1.4 per cent higher, with Lloyds up 1.3 per cent and HSBC edged 1 per cent higher.
EUROPE
European shares were softer as markets await developments in trade talks between the EU and the US. The blue-chip Stoxx 50 index fell by 0.3 per cent while the pan-European Stoxx 600 dipped by just over 0.1 per cent.
Shares in Stellantis jumped by 1.5 per cent despite the Fiat and Peugeot-maker reporting a net loss of €2.3 billion for the first half of the year. The company also said it would take a €300 million hit from the impact of Trump’s tariffs, including the cost of lost production.
Other automakers also jumped, with BMW up 1.1 per cent, Volkswagen up 0.6 per cent and Mercedes-Benz ahead by 0.4 per cent.
Also on the earnings front, Portugal’s Galp Energia rose 1.7 per cent after raising its core profit target and announcing that it plans to find a partner to develop a promising oil discovery off Namibia.
NEW YORK
The S&P 500 and the Nasdaq reached new record highs on Monday, bolstered by gains in megacaps as investors geared up for the week’s big tech earnings, while the prospects of fresh trade deals also boosted sentiment.
The S&P 500 advanced by 0.6 per cent, while the Nasdaq Composite jumped 0.5 per cent and the Dow Jones Industrial Average moved 0.5 per cent higher to just 1.28 per cent below its all-time high.
Verizon gained 4.1 per cent after boosting its annual profit forecast. The stock also drove up the communications sector, which emerged as the top gainer among other sectors.
The spotlight was on Google-parent Alphabet and electric-vehicle maker Tesla, whose results this week will kick off the “Magnificent Seven” earnings parade, and could set the tone for Wall Street.
Shares of Alphabet rose 2.1 per cent, while Tesla dipped 0.2 per cent. Both stocks have lagged their peers so far this year. – Additional reporting: Bloomberg, Reuters
