Global markets begin February in choppy waters

Global equity markets began the new month in choppy trade after a volatile January as investors weighed strong earnings from big-name US companies against mixed economic data and inflation worries.

DUBLIN

Euronext Dublin was up 1.6 per cent at close of business on Tuesday as it moderately outperformed its international peers.

AIB and Bank of Ireland were up just under 2 per cent and just over 3 per cent respectively. Permanent TSB closed down 1 per cent.

Building materials company CRH finished the day up just over 2.5 per cent. "Heidelberg Cement had numbers out on Monday that were strong, and that kind of led the sector," noted a trader.

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In the same sector insulation specialist Kingspan was up 2 per cent.

It was a strong day for the airlines also, with Ryanair up 2 per cent, while Easyjet and Aer Lingus parent International Airlines Group were both up 3 per cent. "Ryanair was weak on Monday after it posted results, so it recovered a bit of that," said a trader.

Among the home-builders, Glenveagh Properties was up 2.5 per cent. A trader noted that the company has enjoyed "a nice little run" in recent months. "A year ago, it was trading at just 80 cent."

Its peer Cairn Homes ended the day down 1.5 per cent.

LONDON

Mining and bank stocks supported London’s FTSE 100 as metal prices and bond yields rose ahead of a widely anticipated Bank of England meeting later in the week.

The blue-chip FTSE 100 index gained 1 per cent, while the banking sub-index rose 2.6 per cent, tracking higher yields amid expectations of interest rate increases.

Soft drinks AG Barr gained 1 per cent after raising its annual profit forecast and saying annual revenue was set to top pre-pandemic levels.

Virgin Money UK edged 0.1 per cent higher after the British challenger bank said credit card spending was back to pre-pandemic levels thanks to pent up demand, while rising interest rates helped lift its margin forecast for the year.

Debt-laden Cineworld fell 4 per cent after it said it had started talks with former shareholders of its US business Regal Entertainment over a potential rescheduling of the British cinema operator's payment obligations.

Tesco, Britain's biggest retailer, climbed 1 per cent after saying 1,600 roles were at risk of redundancy due to operational changes at stores.

EUROPE

European shares ended higher, recovering some of January's steep losses, with Swiss lender UBS providing the most support on strong fourth-quarter earnings.

The pan-European Stoxx 600 rose 1.3 per cent after January became its worst performing month since October 2020 as concerns over rising interest rates, inflationary pressures, and geopolitical tensions knocked the index down 4 per cent.

Financial stocks rose 2.1 per cent, boosted by UBS after it posted its best annual profit since the global financial crisis, emboldening it to hike share buybacks and set more ambitious profit goals. Switzerland’s biggest bank advanced 8 per cent to hit a four-year-high.

Automaker Stellantis advanced 2.2 per cent after three union sources said the company could cut up to 1,400 jobs in France this year as it continued to adapt to a changing industry.

NEW YORK

US stocks rose in choppy trading, extending gains from the past two sessions, as focus turned to Google parent Alphabet's earnings later in the day.

Seven of the 11 major S&P sectors advanced, with energy stocks hitting a record high. The S&P 500 and the Nasdaq logged their largest two-day gains since April 2020 on the final trading day of January, which still turned out to be their worst monthly performance since March 2020 on fears over faster-than-expected rate hikes and geopolitical tensions.

Google parent Alphabet edged up 0.9 per cent ahead of its quarterly results, with Amazon and Meta Platforms expected to report later this week.

Exxon Mobil rose 6 per cent after posting its biggest quarterly profit in seven years tracking strong energy prices, while United Parcel Service jumped 14.3 per cent after projecting 2022 revenue above market expectations. (Additional reporting: Agencies)