Stocks gained on Thursday as US data showing a more rapid-than-expected cooling in US inflation last month strengthened hopes for more Federal Reserve cuts in 2026, while the European Central Bank (ECB) issued some positive commentary on the euro zone economy.
Policymakers in Frankfurt opted to keep interest rates unchanged, noting also that the single currency area has shown resilience to global trade shocks.
Dublin
The Iseq index added 0.6 per cent, pulled higher by the banks and Ryanair.
AIB advanced by 1.6 per cent to €9.19 per share, after reaching a second deal in 13 months to shift some bad-loan risks off its balance sheet in a move that frees up expensive capital and underpins future payouts to investors.
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Bank of Ireland also gained, closing at €16.43 per share, up 1.3 per cent. PTSB was out of sorts, sliding by more than 1 per cent to €2.86.
Ryanair jumped by 0.6 per cent to close at €29.62, part of a sectoral move for the European airline industry.
Drilling equipment group Mincon was the biggest gainer on the index, adding almost 2 per cent.
Europe
European indices were propelled higher by the ECB’s commentary on the euro area economy and US inflation data. The blue-chip Stoxx 50 index was up by more than 1 per cent, and the pan-European Stoxx 600 added slightly less than 1 per cent.
Reversing earlier losses, bank stocks were among the biggest winners. Italy’s Intesa Sanpaolo jumped by 0.9 per cent, with Spain’s Santander and BBVA up by 1.2 per cent and 1.7 per cent respectively.
The rebound was also fuelled by tech stocks after an upbeat forecast from the largest US memory chipmaker, Micron Technology.
Germany’s Infineon jumped by 1.1 per cent, while Dutch chipmaker ASML added more than 2 per cent.
Energy companies were also up, tracking further rises in global oil prices.
London
UK shares inched higher after the Bank of England cut interest rates as anticipated. The benchmark FTSE 100 and the mid-cap FTSE 250 were up by around 0.6 per cent.
BP initially eked out marginal gains after it appointed Meg O’Neill, the head of Australia’s Woodside Energy, as its new chief executive, but closed down by 1.2 per cent.
Otherwise, energy stocks advanced against a backdrop of rising oil and gas prices. Index heavyweight Shell was up by 0.1 per cent, while Centrica moved 0.6 per cent higher.
Banking stocks also gained. HSBC jumped by 0.8 per cent and Barclays added 1.1 per cent.
Defence and aerospace stocks were another bright spot, recovering losses from earlier in the week, with Rolls-Royce climbing 3.8 per cent and BAE up by more than 2 per cent.
New York
Despite numerous caveats surrounding another high-profile report impacted by the government shutdown, traders welcomed the slowest increase in consumer prices since early 2021.
The S&P 500 halted a four-day slide, with tech shares leading the charge after Micron Technology’s solid outlook, which propelled its share price 15.5 per cent higher.
Other memory companies, including SanDisk and Western Digital, also surged, while the Philadelphia SE Semiconductor Index climbed 2.8 per cent.
Tech stocks were regaining some ground after declines on Wednesday, when uncertainty over Oracle’s funding plans for a Stargate data centre sent the S&P 500 and the Nasdaq to three-week lows.
Among others, Lululemon gained 5.8 per cent as a report said activist investor Elliott has acquired more than a $1 billion stake in the athletic-wear company.
Birkenstock lost 3.7 per cent after the footwear maker’s annual profit forecast missed estimates.
Trump Media & Technology jumped 22.8 per cent after the company and fusion power company TAE Technologies said they have agreed to combine in an all-stock deal valued at more than $6 billion. – Additional reporting: Reuters, Bloomberg
