Global shares were mixed on Wednesday even after weak US economic data solidified expectations of a Federal Reserve interest rate cut.
Dublin
Euronext Dublin finished the day up 0.1 per cent, with insulation specialist Kingspan the standout performer. The Cavan-based group, which is one of the biggest companies left on the Irish stock exchange, climbed 1.5 per cent with almost 47 million shares were traded.
The performance came days after Goodbody described Kingspan shares as “grossly undervalued” despite record profits and strong growth prospects. The brokerage said the market has “lost sight” of the company’s long-term growth drivers.
In the trading note issued on Monday, Goodbody said Kingspan was on track to deliver “another year of record profits”, and that it had outperformed most European construction stocks while its valuation “underperformed” peer companies.
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Elsewhere, it was a bad day at the office for the banks as AIB and Bank of Ireland sank 0.5 per cent and 1 per cent respectively.
Ryanair finished just above flat on the day despite a lot trading activity, while food giant Kerry Group climbed 0.6 per cent.
London
The UK’s FTSE 100 ended slightly lower, weighed down by losses in financials stocks, while mining and energy shares again advanced ahead of the US Federal Reserve’s decision on interest rates next week.
The blue-chip FTSE 100 closed down 0.1 per cent, while the midcap FTSE 250 edged up 0.1 per cent.
Industrial metal miners rose 3.3 per cent as copper prices hit a record high. Glencore rose 6.3 per cent, hitting an over 10-month high after the miner said it aims to reach 1.6 million metric tons of copper production by 2035.
Antofagasta rose 4.9 per cent and Anglo American added 2.5 per cent.
Aerospace and defence gained 1.4 per cent after Russia said talks with US officials in Moscow failed to reach a compromise on a potential Ukraine peace deal. Rolls-Royce added 1.6 per cent while Babcock International rose 1.5 per cent.
Energy stocks advanced 0.7 per cent, tracking a rise in oil prices. BP gained 1.3 per cent.
On the flip side, heavyweight bank shares dropped 1.7 per cent. Lloyd’s Banking lost 1.4 per cent while Close Brothers and Barclays declined about 0.7 per cent each. HSBC Holdings, which named interim chairman Brendan Nelson as permanent CEO in a surprise move, fell 1.6 per cent.
Europe
Markets on the continent were broadly higher as the European Stoxx 600 index rose 0.13 per cent, while Germany’s Dax rose by the same amount.
Elsewhere, MSCI’s gauge of stocks across the globe rose 0.17 per cent. In currency markets, the euro hit a six-week high against the dollar, boosted by data showing an expansion in euro zone business activity. The single currency was last up 0.33 per cent at $1.1661.
On the bond markets, Germany’s 10-year yield, seen as a bellwether in Europe, declined one basis point to 2.74 per cent.
New York
Wall Street’s benchmark S&P 500 edged higher in choppy trading, as a set of economic data bolstered expectations for an interest rate cut by the Federal Reserve, while a slide in Microsoft’s shares kept a lid on gains.
Microsoft fell as much as 3 per cent after a report said the tech giant has cut AI software sales quotas after many sales staff missed their targets in the fiscal year that ended in June.
The shares cut initial losses and were last down 1.8 per cent after CNBC said the company denied the report.
The broader tech sector was down 0.4 per cent, the biggest decliner on the S&P 500, and chip companies such as Nvidia slipped 0.3 per cent, while Broadcom lost 1.6 per cent.
At about noon eastern time, the Dow Jones Industrial Average was up 0.43 per cent, the S&P 500 was up 0.05 per cent, while the Nasdaq Composite as down 0.12 per cent. - (Additional reporting: Agencies)
