European shares rose on Monday as investors globally cheered signs that the record-long US government shutdown could soon come to an end. Guinness’s parent, Diageo, advanced after it named a new chief executive.
The pan-European Stoxx 600 closed up 1.4 per cent at 572.82 points, logging its best day in nearly three weeks.
Equities advanced globally on Monday – rallying from losses late last week amid concerns over a tech bubble – as the US Senate advanced a bill that would reopen the government and keep it running until the end of January. The bill needs a green light from the House of Representatives and US president Donald Trump.
DUBLIN
The Iseq All-Share index rose 2.4 per cent to 12,294.83.
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Kingspan was among the main gainers, soaring 6.8 per cent to €67.15, after the insulation manufacturer issued a reassuring trading update and positive outlook.
Banking stocks were also in demand, with AIB advancing 2.3 per cent to €8.41 and Bank of Ireland jumping 2.5 per cent to €15.11. PTSB nudged 0.6 per cent higher to €3.20 – though it remains up 122 per cent so far this year, driven by a surge since the bank announced less than two weeks ago that it had put itself up for sale.
Shares in Dalata Hotel Group ceased trading on the Dublin Stock Exchange today after its €1.4 billion sale to Scandinavian investors has completed.
LONDON
UK’s FTSE 100 touched a record closing high as global stocks.
Shares of the Diageo, the world’s largest spirits maker, gained 5.2 per cent, recording their biggest percentage gain in more than three years, after the company appointed Dave Lewis as CEO, turning to an outsider to revive growth during a challenging period.
“The stock is unloved after several years of disappointment and the appointment of a highly respected CEO could be enough to win over many investors,” said Dan Coatsworth, head of markets, AJ Bell. “However, Lewis knows he will ultimately be judged on results, not hope.”
Investors will keep an eye on third-quarter economic data and more corporate earnings this week.
UK’s precious metal miners and industrial metal miners climbed 5.1 per cent and 1.4 per cent, respectively, as gold hit two-week high and copper prices climbed.
Among other stocks, British Airways parent IAG gained 3.4 per cent, having tumbled 11.6 per cent on Friday after reporting weak US demand.
EUROPE
Major bourses in Germany and France also rose 1.7 per cent and 1.3 per cent, respectively.
Tech stocks bounced back from recent losses, gaining 1.6 per cent, while Siemens Energy rose 4.6 per cent after brokerage Jefferies upgraded the data centre equipment maker to buy from hold.
Banks gained 2.9 per cent. Commerzbank rose 6.6 per cent after Deutsche Bank upgraded the stock to buy.
On the earnings front, Salzgitter gained 5.4 per cent after the German steelmaker’s nine-month results exceeded analysts’ expectations.
Novo Nordisk rose 1.2 per cent after the Danish drugmaker dropped its bid for US weight-loss drug company Metsera, ending a bidding war with rival Pfizer.
Germany’s Northern Data jumped 31.5 per cent after Rumble, which hosts President Donald Trump’s social media platform Truth Social, said it is buying the AI cloud company in a roughly $767 million (€664 million) all-stock deal.
NEW YORK
Wall Street’s main indexes were ahead in early afternoon trading.
“The government shutdown was continuing a lot longer than people had expected. There were concerns around the economy, about flights potentially being cancelled and having a wider impact to the economy,” said Chris Zaccarelli, Northlight Asset Management’s chief information officer.
Most tech stocks jumped, with Nvidia, Alphabet and Meta Platforms gaining.
Airlines came under pressure as government-directed flight cuts and air traffic staffing absences continue to disrupt US air travel. Shares in United Airlines and American Airlines dropped.
Shares of health insurers dropped after the US Senate struck a deal to end the 40-day federal shutdown without extending Affordable Care Act subsidies, setting up a December vote on the issue instead. – Additional reporting, Reuters.
