Optimism over improved prospects for a trade deal between the United States and China when Donald Trump and Xi Jinping meet later this week buoyed US-listed shares of Chinese companies. European investors, meanwhile, were cautious in advance of an imminent ECB rate decision.
DUBLIN
The Iseq All-Share index ended the bank holiday session up 0.26 per cent to 11,799.04, thanks to a strong day from the banks.
In line with sectoral moves in Europe, AIB added 1.53 per cent to €7.615, as Bank of Ireland gained 1.08 per cent and Permanent TSB rose 0.43 per cent.
The home builders had a mixed day. Ires REIT added 0.63 per cent and Cairn Homes rose 0.21 per cent, but Glenveagh was down 0.64 per cent. Building materials specialist Kingspan Group also fell, by 1.42 per cent, to €69.40.
RM Block
Wind and solar energy group Greencoat Renewables was 1.25 per cent weaker on €0.71, with agriculture group Origin Enterprises another to slip – by 1.29 per cent. But few of the major components fell, keeping the index positive.
LONDON
London-listed stocks ended flat as investors paused after a recent rally and HSBC slipped after the lending giant said its quarterly results will be hit after losing part of a court appeal in Luxembourg.
HSBC fell as much 2.4 per cent during the session after it said it will report a $1.1 billion provision in its third-quarter results, due on Tuesday, after losing part of an appeal tied to Bernard Madoff’s Ponzi scheme. The lender’s shares ended down 0.3 per cent.
More broadly, both the internationally-focused FTSE 100 and the domestically-focused FTSE ended flat.
Global sentiment was also upbeat on expectations of the US sealing a trade deal with China, which sent safe-haven asset gold below $4,000 per ounce. This weighed on UK-listed precious metal miners which lost 5.8 per cent.
In a bright spot, Goodwin surged 33.3 per cent to a record high after the mechanical engineering company forecast annual profit above expectations and declared an unexpected one-off interim dividend.
Convenience food manufacturer Greencore ended the session 1.6 per cent weaker after Britain’s competition regulator said its proposed takeover of peer Bakkavor might harm competition in the supply of own-label chilled sauces.
EUROPE
The continentwide STOXX 600 index edged up 0.22 per cent as investors weigh up an imminent European Central Bank decision on rates later this week. The ECB is expected to hold interest rates steady for its third straight meeting on Thursday.
Porsche rose 1.27 per cent after the luxury carmaker reported an adjusted operating loss on Friday that was smaller than the market had feared.
Novartis fell 0.88 per cent after the drugmaker said on Sunday it had agreed to acquire US biotech firm Avidity Biosciences for about $12 billion in cash.
Shares in Sydbank rose 5.53 per cent after the Danish bank agreed to a merger deal with Vestjysk and Arbejdernes Landsbank.
Kemira fell 5.53 per cent after Inderes downgraded the stock, while drugmaker Roche declined 1.4 per cent after a Jefferies downgrade.
NEW YORK
Wall Street’s main indices hit more record highs on Monday as expectations of a US-China trade deal fuelled risk-taking at the start of a week dominated by Big Tech earnings and a likely Federal Reserve rate cut.
US-listed shares of Chinese companies were in the spotlight, with companies such as Alibaba, JD.com, PDD Holdings and Baidu benefiting from the increased investor confidence, while a series of rare earth miners fell.
Keurig Dr Pepper jumped after lifting its annual sales forecast and raising about $7 billion to finance its purchase of Dutch coffee giant JDE Peet’s.
The S&P’s consumer discretionary index gained with components such as Lululemon shares on the rise after the company announced a partnership with NFL to launch an apparel collection.
Tech stocks were also among the winners, with Intel and Super Micro Computer in on the action. The Philadelphia SE Semiconductor index also hit a fresh midday high.
A series of US-listed shares of Argentinian companies jumped after President Javier Milei’s election victory, including YPF, Grupo Supervielle and Banco Macro.
Fed chairman Jerome Powell’s comments on Wednesday will be carefully scrutinised for hints on a December cut amid a Government shutdown that has blocked economic releases. – Additional reporting, Reuters, PA.
