European markets made steady advances on the back of a solid showing for commodity firms as they also benefited from a positive return to trading in the US. Gains in London were modest compared with Paris, which rebounded strongly after President Emmanuel Macron’s coalition lost its majority on Sunday.
DUBLIN
Airlines and holiday firms had a weak showing on Tuesday as Ryanair boss Michael O’Leary warned that disruption to flights is expected to continue throughout the summer due to staff shortages. Ryanair was the main drag on the Dublin market, falling 4 per cent to €11.91.
After tumbling more than 11 per cent in the previous session, insulation maker Kingspan saw another 4 per cent wiped off the value of its stock. The company warned this week of a major deterioration in market conditions as the global economy falters. Hotel group Dalata bucked the hospitality trend, rising 2.6 per cent to €3.86.
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As Kerry’s largest shareholder, Kerry Co-op, mulls a possible deal which would see the plc’s legacy dairy business spun out into a separate joint venture, the food group’s shares traded flat on the day, maintaining a value of €89.50. Rival food group Glanbia fell 4 per cent to €10.11 amid further warnings about rising commodity prices.
LONDON
EasyJet was the worst performer in the FTSE 350, slipping by 28p to 415.7p, as it was also hit by the announcement that its Spanish cabin crews would be looking to go out on strike for nine days in July.
Elsewhere in company news, online retail firm Ocado saw shares drop after it raised £578 million from investors, including its leadership team, through a discounted share placing. Ocado, which has also secured a £300 million finance facility, said funding from the share sale will be pumped into growth, particularly in its technology business. Shares in the business finished 22p lower at 855.6p on Tuesday.
Packaging giant DS Smith closed higher after it shrugged off “significant cost increases” to post a surge in profits for the past year. The paper seller reported a pretax profit of £378 million over the year to April, representing a 71 per cent increase against the previous year. The group was 10.5p higher at 292.8p at the close of play as a result.
The FTSE 100 ended the day up 30.24 points, or 0.42 per cent, at 7,152.05.
EUROPE
European stocks moved higher on Tuesday, continuing a recovery seen at the start of the week. The pan-European Stoxx 600 index closed up 0.36 per cent, paring earlier gains of more than 1 per cent. The German Dax increased by 0.2 per cent by the end of the session, while the French Cac rose 0.75 per cent.
Autos climbed 1.5 per cent to lead gains while utilities slipped 0.9 per cent. The positive trade for Europe comes as global markets appear to be staging a comeback rally after a tumultuous week last week.
NEW YORK
US equities rebounded Tuesday after last week’s rout erased nearly $2 trillion from the S&P 500. Treasuries retreated. The S&P 500 added 2.6 per cent, led by energy and consumer discretionary shares, while the tech-heavy Nasdaq 100 rose 2.9 per cent following the long weekend.
Revlon gained 42 per cent in the wake of its Chapter 11 bankruptcy filing, Kellogg was up 3.1 per cent after plans to separate into three companies, and a basket of the most-shorted stocks surged as much as 5.5 per cent.
The drop in Treasuries took the benchmark 10-year yield back toward 3.3 per cent. Sentiment this week is being helped by comments from US president Joe Biden that a US recession isn’t “inevitable”, but the outlook remains parlous for investors weighing whether the market has bottomed. — Additional reporting Reuters and Bloomberg
