European shares were unchanged on Friday, as losses in heavyweight healthcare shares were countered by an advance in oil and gas stocks, closing out a busy week filled with corporate earnings from around the continent.
The pan-European Stoxx 600 index held steady, clocking marginal weekly losses.
Dublin
The Iseq All-Share index fell almost 1 per cent to 11,143.28. Ryanair stood out as a weak spot, sliding 2.1 per cent as investors positioned themselves ahead of quarterly earnings from the carrier on Monday, and as they mulled air traffic control strikes in France and higher oil prices.
The main banks were also out of sorts, with AIB down 2.3 pe cent at €6.58 and Bank of Ireland down 2.4 per cent at €11.85.
RM Block
Still, food companies advanced, with Kerry Group rising 0.3 per cent to €90.60, while Glanbia also nudged higher.
London
The UK’s FTSE 100 rose 0.2 pe cent to extend its winning streak to a fourth week, as investors looked past economic concerns to focus on the Bank of England’s policy path, while a slate of positive corporate updates also lifted mood.
Traders are currently pricing in a 78 per cent probability of a rate cut at the Bank of England’s policy meeting next month.
Among company moves, Burberry shares jumped 5.5 per cent to their highest in nearly 17 months after the luxury brand’s comparable retail sales fell less than expected. The strong earnings showed early signs of a recovery for the company that has struggled with underperformance.
Heavyweight BP also gained 0.7 per cent after the energy major said it had agreed to sell its US onshore wind business, bp Wind Energy, to US-based electricity transmission systems operator LS Power.
Elsewhere, GSK was the biggest drag on the blue-chip index, dropping 4.6 per cent to a three-month low, after a U.S. FDA advisory panel recommended against approving the pharmaceutical giant’s blood cancer drug Blenrep, citing earlier concerns over eye-related side effects.
Europe
With corporate earnings gaining steam, investors are closely examining corporate guidance to see how firms are adjusting to the shifting US tariff policy, ahead of the August 1 trade deadline.
Swedish mining equipment maker Epiroc dropped 9.2 per cent after its second quarter results missed market expectations.
Atlas Copco also fell 7.8 per cent after the Swedish industrial group reported second-quarter adjusted operating profit below market expectations and a decline in orders.
There were bright earnings as well, with Saab jumping 16.4 per cent after posting higher-than-expected second-quarter earnings and raising its sales outlook.
Among other moving stocks, Danish wind turbine maker Vestas jumped 15 per cent after JP Morgan upgraded its rating to the equivalent of a buy.
Iveco climbed 8.3 per cent on reports that Italy’s Agnelli family is in talks over the possible sale of the truck maker with two mentioning Tata Motors as a potential buyer.
New York
Wall Street indexes moved lower in early afternoon trading after the Financial Times reported that US President Donald Trump was pushing for a minimum 15-20 per cent tariff on all EU goods.
Netflix dropped to an over one-month low despite the success of Squid Game helping the company surpass earnings forecasts. The streaming giant also lifted its annual revenue outlook.
But for Wall Street, it’s been a heavy week. Jitters spiked midweek after reports surfaced of a possible ouster of Fed vhair Jerome Powell – reports quickly denied by Mr Trump. Still, with the president’s criticism of Mr Powell’s reluctance to cut rates growing louder, Fed governor Chris Waller signalled he’d be willing to take the job if asked.
American Express outpaced second-quarter profit estimates, buoyed by strong spending from its affluent cardholders. However, its shares were down.
Brokerage firm Charles Schwab gained after its profit rose nearly 60 per cent in the second quarter.
Cryptocurrency stocks rose after the US House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. Robinhood Markets and Coinbase Global gained. – Additional reporting, Reuters
