Technology stocks led a surge in US equities on Monday, while European bank shares gained momentum after Morgan Stanley analysts issued an upbeat report on the sector.
European investors remained cautious amid continuing efforts to broker a peace deal in Ukraine.
Meanwhile, markets are keenly anticipating a raft of US economic data this week, as well as Wednesday’s budget announcement in the UK.
Dublin
The Iseq index advanced for a second consecutive session, surging 1.8 per cent as banking stocks led the charge.
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On Monday, Morgan Stanley analysts outlined a positive view of euro area banks, which are poised to extend their best rally since 1997 over the next 12 months, they said. The brokerage expects estimated net interest income growth of 4 per cent across the sector in the next 12 months, amid strong forecasted deposit and loan growth.
The report lifted Irish banks and their European peers on Monday. AIB finished on a session high €8.59 per share, up 2.4 per cent, while Bank of Ireland jumped by more than 2.3 per cent to close at €15.64.
PTSB, meanwhile, was out of sorts, dropping almost 1 per cent to €3.17.
Kingspan regained momentum, advancing by another 2.6 per cent to €68.40 per share after Deutsche Bank upgraded the stock to buy last week.
Europe
European shares inched higher after paring earlier gains as investors showed caution about US president Donald Trump’s efforts to broker peace in Ukraine.
The blue-chip Stoxx 50 advanced by 0.2 per cent, while the cross-European Stoxx 600 added 0.3 per cent.
Among individual stocks, Bayer surged by more than 12 per cent after an experimental stroke-prevention drug showed positive results in a late-stage clinical study.
Euro area banks continued to perform, with Italian private lender Intesa Sanpaolo edging 0.2 per cent higher on high trading volumes.
There was also strong trading in the Netherlands’ ING and Spain’s Santander, which added 0.6 per cent and 0.8 per cent respectively.
London
UK shares were mixed, with the benchmark FTSE 100 index logging a marginal slide while the mid-cap FTSE 250 snapped an eight-day losing streak.
Investors cheered positive analyst comments on British housing stocks in advance of the Labour government’s budget later in the week.
Housebuilders such as Vistry and Barratt Redrow rose 5.3 per cent and 1 per cent, respectively, after Goldman Sachs started coverage of the sector with a “constructive outlook”, saying chancellor Rachel Reeves’s budget will help remove some of the uncertainties surrounding the sector.
Meanwhile, Standard Chartered climbed 2.5 per cent after Morgan Stanley upgraded the lender to “overweight” from “equal-weight”.
Barclays added 1.6 per cent after the brokerage named it a top pick.
Among other stocks, advertising firm S4 Capital and M&C Saatchi plunged more than 8 per cent, with the former hitting a record low, after the companies downgraded their annual profit and revenue outlooks.
New York
Technology stocks drove an advance in US equities, with Alphabet and Alibaba notching gains as traders kick off a data-packed week.
The S&P 500 rose 1 per cent while the Nasdaq 100 jumped 1.8 per cent and the Dow Jones Industrial Average added 0.6 per cent.
Federal Reserve governor Christopher Waller also fuelled optimism on Monday after indicating support for an interest-rate cut next month.
Mega-cap stocks were in the lead, with Alphabet up 5.7 per cent and Tesla gaining 4.4 per cent. Four of the 11 S&P 500 subsectors were higher.
Meanwhile, Bristol-Myers gained 3.8 per cent on the tails of its European rival Bayer’s surge.
US retail sales and producer prices data will also be in focus this week as the release of government data resumes after the end of the extended government shutdown.
– Additional reporting: Reuters, Bloomberg
