European shares were largely flat on Tuesday. Gains from the big banks outweighed declines in healthcare, with Bayer going against the sectoral trend after the US administration supported the German pharmaceutical firm’s appeal against lawsuits over its weedkiller.
Dublin
The Iseq All-Share index ended the session down 0.77 per cent to 12,750.68 after several of its larger constituents lost ground.
Among the most traded shares, Kerry Group and Ryanair fared worst. Their respective 2.19 per cent and 1.35 per cent slides contributed to the index slipping into the red.
Irish Ferries owner Irish Continental Group went against the tide to add 4.53 per cent to reach €6. Its gains were backed up by insurance group FBD Holdings, which ended the session 3.31 per cent firmer.
RM Block
These gains weren’t enough to keep the index positive, however, as global sectoral shifts hit consumer-related areas, knocking Glanbia down a peg in the afternoon. Its shares fell 1.36 per cent by close.
London
UK’s FTSE 100 inched lower, with gains by financial stocks after the Bank of England eased capital requirements for lenders in a bid to boost growth proving not quite enough to keep it in the red. The index fell 0.0075 per cent.
Shares of Lloyds Banking Group added 1.95 per cent, while HSBC Holdings, Barclays, and Standard Chartered were all stronger.
The broader banks index climbed as Britain’s central bank cut the capital lenders need to hold for the first time since the global financial crisis after the lenders passed its stress test.
Chemicals stocks were also in a bright spot, bolstered by Victrex jumping 7.69 per cent, after the thermoplastic polymer maker announced higher full-year sales.
Britain’s economy will grow faster than previously expected next year, the OECD said on Tuesday, citing the impact of chancellor Rachel Reeves’ budget on consumption and the drag from global uncertainty that could keep pressure on inflation.
Europe
The European benchmark Stoxx 600 index stayed barely in the green, up 0.04 per cent on Tuesday, failing to regain ground after Monday’s industrials-driven decline. The banks were a driving force in stopping the index’s losses.
Healthcare stocks dipped, weighed by losses in heavyweights AstraZeneca and Novo Nordisk. However, Bayer jumped 12.08 per cent, limiting losses in the sector after Donald Trump’s administration urged the US supreme court to take up the company’s bid to curtail thousands of lawsuits which allege its Roundup weedkiller caused cancer.
European shares outperformed US peers in the first half of the year, as uncertain trade and monetary policy in the US drove investors to diversify abroad. However, Wall Street has since caught up, with gains surpassing those of Europe as US markets capitalised on the euphoria around artificial intelligence.
FDJ United slipped after JP Morgan downgraded the lottery and online game operator’s stock to “underweight”.
Banking indices were bolstered by Banco Santander’s 1.46 per cent gain after it sold a 3.5 per cent stake in subsidiary Santander Bank Polska.
New York
The S&P 500 and the Nasdaq were higher on Tuesday, lifted by tech shares, as growing bets on interest rate cuts offset caution in advance of key inflation data later this week.
The information technology sector led the market, driven by Nvidia’s reaching a more-than-one-week high midday and a jump in Dell Technologies.
Investors were eyeing news of potential successors for Fed chairman Jerome Powell when his term ends next year, with reports suggesting White House economic adviser, Kevin Hassett, is a top contender. The decision is expected before Christmas.
Boeing soared after the aircraft-maker said higher deliveries will be a key driver of positive cash flow next year.
Warner Bros Discovery watched its shares gain after reports said that it received a second round of bids, including an offer from Netflix.
Crypto stocks including Strategy and Coinbase gained, respectively, as bitcoin showed signs of stabilising after its largest one-day dollar loss since May 2021 in the previous session. – Additional reporting, Reuters, PA.
