Global markets rose on Thursday as a relatively tame inflation reading combined with more signs of jobs cooling spurred a rally on Wall Street amid speculation the Federal Reserve will slash interest rates for the first time this year.
Dublin
Euronext Dublin was an underperformer across Europe as it finished flat on the day.
Among the financial names, AIB and Bank of Ireland both finished down about 1 per cent as they gave up ground following strong moves earlier this week. “There was a bit of weakness in the financial sector amid talk of interest rates bottoming out over the next while,” said a trader.
Cavan-based insulation specialist Kingspan, which is one of the biggest hitters on the index, was up 0.5 per cent at close of business as it built on recent gains.
RM Block
Ryanair climbed 1 per cent as it held its annual general meeting, during which chief executive Michael O’Leary said business was “booming” despite “slightly disappointing” growth due to delays in aircraft delivery from Boeing.
Dalata, the biggest hotel operator in the State, was up almost 1 per cent at €6.41 after a vote to approve its takeover was passed at an extraordinary general meeting.
London
The FTSE 100 posted strong gains to close up 0.8 per cent, while the FTSE 250 climbed 0.7 per cent, and the AIM All-Share finished up 0.7 per cent.
On the FTSE 100, Compass Group rose 2.8 per cent as Deutsche Bank upgraded to “buy” from “hold” with a 2,900 pence price target. However, M & G traded 1.8 per cent lower as it traded ex-dividend.
On the FTSE 250, Trainline steamed ahead by 12 per cent after raising earnings guidance and announcing a £150 million (€173 million) share buyback.
On AIM, Fevertree Drinks cheered investors, climbing 13 per cent, as it announced plans to cancel its share premium account to create additional distributable reserves, a move aimed at supporting future dividends, share buy-backs and broader corporate flexibility.
Europe
The pan-European Stoxx 600 index rose 0.5 per cent after the European Central Bank (ECB) kept its interest rates steady at 2 per cent as widely expected and trimmed its inflation forecasts.
However, it offered no clues about its next move, while investors continued to bet more support will be needed.
Elsewhere, the Cac 40 in Paris ended up 0.8 per cent, while the Dax 40 in Frankfurt closed 0.3 per cent higher.
Germany’s 10-year bond yield, the benchmark for the euro zone was at 2.66 per cent, steady on the day and largely where it was before the ECB announcement. The euro dipped against the dollar and pound.
New York
Wall Street’s main indexes hit intraday record highs, boosted by gains across sectors, after the latest inflation data did little to alter market expectations of interest rate cuts by the Federal Reserve.
Most sectors on the S&P 500 were trading higher, with the healthcare sector up 1.5 per cent at a more than four-month high.
Centene advanced 11.5 per cent after the health insurer reaffirmed its annual profit forecast and said quality ratings for its Medicare plans were in line with expectations.
Consumer discretionary stocks also gained 1.5 per cent with electric vehicle maker Tesla the biggest boost, up 4 per cent.
Micron Technology gained 10 per cent after Citigroup raised its price target on the memory chipmaker to $175 (€149) from $150. The Philadelphia SE Semiconductor Index rose 0.9 per cent, up for the sixth straight session.
Communication services stocks on the benchmark index were outliers, down 0.2 per cent.
The S&P 500 and the Nasdaq notched record high closes on Wednesday, partly helped by a nearly 36 per cent surge in Oracle after an upbeat forecast that brought the cloud computing company closer to joining the trillion dollar club. Oracle, however, dropped 3 per cent on Thursday. – Additional reporting: Agencies
