Tech stocks spearheaded a rebound in European shares on Thursday, after a two-day slump fuelled by worries over potential US tariffs and France’s economic and political challenges, with investors now closely watching inflation reports for clues on the future trajectory of interest rate cuts.
Trading volumes were light as Wall Street was closed for the Thanksgiving holiday.
Dublin
The Iseq ended 0.6 per cent higher after gains for key stocks including Kingspan and Kerry Group. The building materials group climbed 1.8 per cent to €71.60, while the food giant rose 1.1 per cent, finishing the day at €89.55.
Corre Energy added 10 per cent to 11 cent. Its shares had declined 9.1 per cent to 10 cent in Wednesday’s trading session amid ongoing concerns about the renewable energy storage developer’s ability to raise fresh capital.
The great Guinness shortage has lessons for Diageo
Ireland has won the corporation tax game for now, but will that last?
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Elf doors, carriage rides and boat cruises: Christmas in Ireland’s five-star hotels
There were mixed fortunes for the banks, with Bank of Ireland rising 0.4 per cent to €8.28, but AIB edging down 0.2 per cent to €5.10. Cairn Homes was also among the fallers, ending 0.5 per cent lower at €2.05.
Ryanair just about managed to finish in positive territory, closing at a price of €18.21.
London
The UK’s domestically focused mid-cap FTSE 250 ended 0.8 per cent higher, while the main FTSE stock index nudged up 0.1 per cent amid light trading volumes, with Direct Line boosting the insurance sector after rejecting Aviva’s £3.28 billion (€3.94 billion) takeover bid.
Insurance stocks jumped 5.9 per cent, registering their biggest one-day gain in four years, with Direct Line Insurance jumping 41 per cent after rejecting Aviva’s bid, saying it “substantially undervalued” the company. Aviva’s shares fell 2.3 per cent.
Spirax-Sarco Engineering rose 3.9 per cent on positive rating actions by two brokerages on the valve-maker’s stocks, while Sainsbury rose 3.1 per cent after JP Morgan upgraded the supermarket’s shares to “overweight” from “underweight”.
Renewi soared 46 per cent after asset manager Macquarie’s preliminary takeover deal of the waste management firm. Energean dropped 8.6 per cent after the gas producer lowered its full-year production forecast.
Europe
The pan-European Stoxx 600 index was up 0.4 per cent. The tech sector climbed nearly 1 per cent, logging its best day in one week, as chip stocks gained after Bloomberg reported the US administration’s China chip curbs could be less severe than expected.
Shares of ASM International, BE Semiconductor and ASML gained between 2 per cent and 2.5 per cent.
France’s blue-chip index also regained some lost momentum, gaining 0.5 per cent, after sliding to August lows in the previous session.
Defence stocks led sectoral gains, boosted by a 4.1 per cent jump in Airbus.
Sentiment eased after European Central Bank (ECB) president Christine Lagarde told the Financial Times a global trade war would be “in nobody’s interest”.
French government bonds held steady after Wednesday’s sell-off drove the risk premium over German bonds to its highest point since the 2012 debt crisis.
French prime minister Michel Barnier’s government faces an uncertain future, as his struggle in securing approval for the 2025 budget in a polarised parliament make it increasingly likely that his fragile coalition will collapse.
The banking sector also provided some support to the Stoxx 600, gaining 0.9 per cent.
Inflation in Germany, Europe’s largest economy, remained flat in November at 2.4 per cent, while rising in several German states. Spain’s November headline inflation met expectations.
Inflation figures for the euro zone, France and Italy are set to be released on Friday.
These reports follow stubbornly strong US inflation data, which raised concerns that the Federal Reserve might take a cautious approach to policy easing. – Additional reporting: Reuters
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
