European shares ended higher on Monday in broad-based gains led by banks, kicking off a week packed with central bank decisions and delayed US economic data on a positive note, as investors returned to risk assets after last week’s subdued finish.
In the US, stocks fell and bonds rose as Wall Street geared up for key economic data this week.
Dublin
The Irish index of shares gained almost 1 per cent on Monday, lifted by gains in banking and food stocks. That was partly offset by weakness in travel shares.
AIB rose 2.3 per cent to €9.02, bouncing back from a Europe-wide decline in banking stocks late last week. Bank of Ireland rose 1.91 per cent, finishing the day at €16.02, while PTSB climbed 1.9 per cent. Insurer FBD was up 1.3 per cent, ending at €15.50.
RM Block
At the other end of the market, Ryanair was marginally lower, falling 0.1 per cent, while Irish Continental Group, operator of Irish Ferries, fell 1.6 per cent.
Food group Kerry Group added 1 per cent to its share price, while insulation specialist Kingspan rose 0.6 per cent.
London
UK stocks closed higher on Monday, starting the week on a positive note ahead of a widely expected interest rate cut by the Bank of England later this week.
The UK’s blue-chip FTSE 100 closed up at 1.1 per cent, while the midcap FTSE 250 index added 0.7 per cent. Both indexes ended lower for a second consecutive week on Friday.
On Thursday, traders widely expect the BoE to lower rates to 3.75 per cent from 4.0 per cent, marking the first reduction since August and bringing borrowing costs to a three-year low.
Among sectors, the life insurance index led with 2.5 per cent gain.
Prudential was up 3.2 per cent after its joint venture with India’s ICICI bank, ICICI Prudential Asset Management’s $1.2 billion initial public offering was fully subscribed on the second day of bidding.
Heavyweight banks stocks firmed 1.7 per cent.
Europe
The pan-European STOXX 600 closed 0.82 per cent higher at 582.97, putting it 0.6 per cent away from a record high. Major regional bourses also advanced, with Spain’s ending at a record close – up 1.2 per cent.
The STOXX 600 slipped into negative weekly territory at the last moment on Friday, mirroring Wall Street after US chipmaker Broadcom’s profit margin warning sparked renewed concerns about a potential bubble in artificial intelligence stocks.
Among others, Argenx shares lost 4.4 per cent after the Dutch biopharma company discontinued a phase-three trial for its thyroid eye disease treatment.
French Drugmaker Sanofi fell 3.9 per cent after expectations grew that the US Food and Drug Administration would delay a decision on its multiple sclerosis drug, tolebrutinib.
Schneider Electric rose 2.5 per cent after brokerages lifted the target price on the French electrical equipment maker.
New York
Wall Street’s main indexes were subdued in choppy trading on Monday, as investors braced for a slew of economic data expected this week and parsed comments from key Federal Reserve policymakers for clues on the interest rate outlook.
In late morning trading, the Dow Jones Industrial Average fell 31.60 points, or 0.07 per cent, to 48,426.45. The S&P 500 was flat at 6,827.46, while the Nasdaq Composite lost 45.22 points, or 0.19 per cent, to 23,149.95.
Six of the 11 S&P 500 sectors climbed, with healthcare up 1 per cent. Tesla gained 4.3 per cent after CEO Elon Musk said it was testing its robotaxis without safety monitors in the front passenger seat.
Energy stocks lost 1.2 per cent, tracking a decline in crude prices.
The S&P 500 and the Nasdaq had logged their steepest daily declines in more than three weeks on Friday, as concerns about inflation and debt-fuelled AI investments pulled the indexes further away from record highs.
Among other stocks, ServiceNow slid 10.5 per cent following a report that the cybersecurity company is in advanced talks to buy start-up Armis.
IRobot slumped 73.1 per cent after the Roomba vacuum-cleaner maker filed for bankruptcy protection. – Additional reporting: Reuters
