European shares rose marginally on Monday, underpinned by gains in financials in the run-up to earnings from big banks later this week.
But the Dublin market lagged its European peers, ending largely flat.
Dublin
Euronext Dublin ended the session at just under 12,929, marginally lower than the day’s opening. Banking shares rose with AIB up almost 1 per cent and Bank of Ireland showing more muted gains of 0.15 per cent. Permanent TSB was 1 per cent lower, while insurer FBD declined 1.2 per cent.
Heavyweights Kerry and Glanbia also gained, adding 0.8 per cent and 1.9 per cent respectively. Insulation specialist Kingspan was up 2.2 per cent, while construction companies Glenveagh and Cairn also added value over the day.
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Ryanair saw its stock decline 2.3 per cent after it reported results that showed a fine by Italian competition authorities dented its profits in the three months to December 31st.
London
The blue-chip FTSE 100 index was almost flat, while the mid-cap index FTSE 250 rose 0.2 per cent.
Industrial shares weighed most heavily on London markets, falling 1.6 per cent, while travel and leisure stocks dropped 1.2 per cent.
Budget carrier Wizz Air has sought US approval to operate flights between the UK and the US, seeking to tap the lucrative transatlantic market. Its shares were down 1.4 per cent.
On the bright side, precious metal miners hit record highs, gaining 5.4 per cent, while industrial metal miners climbed 1.4 per cent. Healthcare stocks also advanced 1.1 per cent, with AstraZeneca and GSK rising more than 1 per cent each.
Banking stocks traded 0.8 per cent higher. HSBC and NatWest are set to follow their European rivals in lifting key profit targets when they report annual earnings in the coming weeks, according to people close to the matter.
Europe
The pan-European Stoxx 600 traded choppily for most of the session and closed up 0.2 per cent at 609.83 points – its highest in over a week. Banks led gains among sectors with a 1 per cent gain each.
Earnings from several big lenders such as Germany’s Deutsche Bank and Britain’s Lloyds are due later this week.
French food and beverage maker Danone slipped 2.3 per cent, having touched its lowest in a year on recalling specific baby formula batches in certain markets.
Airbus slipped 2.1 per cent. In an internal letter, CEO Guillaume Faury warned staff that the plane maker must be ready to adapt to unsettling new geopolitical risks.
Also limiting gains was a 1.6 per cent drop in defence shares.
On the other hand, sportswear maker Puma shot up 16.9 per cent, recovering from Friday’s 14 per cent slide.
New York
The S&P 500 and Nasdaq climbed to their highest levels in more than a week on Monday, as investors geared up for a slew of mega-cap earnings and a closely watched Federal Reserve decision.
Both indexes extended gains for a fourth consecutive session, putting them on track for their longest winning streak in over a month.
Gains in a handful of mega-cap names did most of the heavy lifting for the S&P 500, with Apple and Meta adding over 2 per cent each. Alphabet, Broadcom and Microsoft rose over 1.5 per cent each.
Apple and Meta, along with Microsoft and Tesla, are slated to report quarterly results later this week, setting up a key test for a rally powered by a euphoria around AI.
Investors will look for signs of measurable pay-offs from AI spending. With concerns over high valuations in the tech space, guidance will be especially important and even a modest stumble could spark a rethink about the AI trade. – Additional reporting: Reuters
