European shares extended gains for a fifth straight session on Tuesday, buoyed by defensive sectors and mining stocks, although concerns over a potential recession limited further upside.
Miners jumped 3.2 per cent to lead gains, lifted by a 5.5 per cent surge in London-listed global miner BHP Group after stellar results. Telecoms and utilities – sectors seen as safer bets during economic uncertainty – also advanced.
The negative economic outlook in Europe has kept investors cautious.
DUBLIN
The Iseq index rose 0.3 per cent in line with the modest gains recorded across European equity markets. Building materials group CRH added 1 per cent to €39.09, while another index heavyweight, Ryanair, rose 1.4 per cent to €13.34. Kerry Group nudged up 0.4 per cent to €106.00, while cheesemaker Glanbia added 0.7 per cent to €11.63 on a good day for stocks in defensive sectors.
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There were mixed fortunes for the banks, with AIB dropping back 0.4 per cent to €2.26, but Bank of Ireland closing up at €5.98, a gain of 2.15 per cent.
Smurfit Kappa lost ground, with the packaging group slipping 0.2 per cent to €37.51, but Flutter Entertainment added 0.2 per cent €128.00.
LONDON
Britain’s top share index ended near a 10-week peak as strong results from BHP Group sparked a rally in mining stocks. The commodity-heavy FTSE 100 rose 0.4 per cent, while the mid-cap FTSE 250 index slipped 0.2 per cent.
London-listed shares of BHP Group rose 5.5 per cent after the world’s largest miner reported its strongest profit since 2011 on the back of gains in prices of coal and other commodities. The stellar results lifted peers such as Rio Tinto, Glencore and Antofagasta. The wider mining index gained 3.7 per cent.
Another bright spot was fashion chain Ted Baker, which surged 16.9 per cent after Juicy Couture and Forever 21 owner Authentic Brands agreed to buy the company in a deal worth $254 million (€250m).
The FTSE 100 has climbed over 8 per cent since hitting its lowest point of 2022 in March, and remains less than 2 per cent away from surpassing the year’s high.
EUROPE
The continent-wide Stoxx 600 index inched up 0.2 per cent, hitting a fresh 10-week high after recouping much of its June losses this week. The French Cac 40 added 0.3 per cent, while the German Dax advanced 0.7 per cent despite data showing a slight fall in German investor sentiment amid concerns the rising cost of living will hit private consumption and tip Europe’s largest economy into recession.
Separate data showed euro zone countries swung into a trade deficit in June from a surplus 12 months earlier because of soaring prices of imported gas and oil.
Delivery Hero climbed 5.4 per cent after the German online takeaway food company forecast a 7 per cent growth on the quarter in its third-quarter gross merchandise value.
Sonova plunged 16 per cent after the Swiss hearing aid-maker lowered its full-year earnings forecast, citing a slower-than-expected development in some important markets and higher component and freight costs. Pandora fell 6.1 per cent after the Danish jewellery maker reported disappointing second-quarter sales in the US market.
US
Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes in Tuesday’s early trading.
Walmart shares rose 5.9 per cent after the world’s largest retailer also forecast a smaller drop in full-year profit than previously projected, while Home Depot added 5.4 per cent as it surpassed estimates for quarterly sales on steady demand from builders as well as price hikes.
The two heavyweight stocks contributed to the S&P 500 retail sector’s 2.1 per cent gain. Meanwhile, Zoom Video Communications fell 4.2 per cent after analysts at Citigroup cut its rating on the pandemic darling’s stock to “sell”.
– Additional reporting: Reuters
