European shares recover from six-week low as investors’ eyes turn to crucial US Fed meeting

European shares recovered from a six-week low on Monday, and US treasury yields rose to decade highs as investors await a crucial Federal Reserve meeting later this week.

China’s central bank surprised analysts and delivered a smaller than expected cut to lending rates as Asian stocks tumbled

Dublin

Euronext Dublin finished down 0.41 per cent, continuing a decline in recent weeks.

There was little movement amongst the major banks as Bank of Ireland closed the day down 0.28 per cent, and shares in AIB were up 0.24 per cent by close on Monday. Shares in Permanent TSB were down 1.84 per cent.

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Biggest upward movers included energy storage company Corre Energy, which saw its stock price rise by 2.38 per cent, and pharma and med tech manufacturer Uniphar which closed up 3.41 per cent.

Meanwhile, largest falls were amongst Glenveagh Properties, which lost 2.47 per cent, and shipping and transport group Irish Continental Group, which was down 2.20 per cent by close of day.

Building materials giant CRH finished down 0.50 per cent as investors await the publication of the company’s second-quarter results later this week.

London

UK stocks closed at a six-week low as a profit warning by homebuilder Crest Nicholson cast shadows on the outlook for the entire sector, bringing the housing index to its biggest monthly fall since September.

Crest Nicholson tumbled 8.8 per cent to the bottom of the midcap index after lowering annual profit expectations.

The blue-chip FTSE 100 index edged 0.1 per cent lower, while the midcap FTSE 250 declined for a seventh consecutive session, dropping 1.1 per cent. When compared to the European STOXX 600, both main FTSE indexes have underperformed so far this year.

An early bounce in commodity prices and reopening hopes in China faded, with the Bank of England’s tough stance on inflation also negatively impacting British stocks.

Europe

The pan-European STOXX 600 ended higher after rising as much as 0.9 per cent throughout the day, recovering from Friday’s six-week low. Energy and mining sectors gained, tracking higher crude oil and metals prices.

Germany’s DAX rose 0.2 per cent despite the fact that official data showed a higher-than-expected fall in German producer prices in July.

Dutch digital payments firm Adyen slumped 8.6 per cent as two brokerages downgraded the stock after the company missed half-year expectations last week.

Troubled Swedish property owner SBB saw shares continue to sink after the firm announced that its chief financial officer Eva-Lotta Stridh would be leaving her position. One of Sweden’s largest commercial landlords, the property company has been struggling to repair battered finances in recent months.

New York

Wall Street trading was mixed, with the Dow Jones Industrial and the S&P 500 giving back earlier gains while the tech-heavy Nasdaq Composite gained on earnings optimism.

The US 10-year Treasury yield rose to a 16-year high as investors looked warily toward a meeting of central bankers on Thursday at Jackson Hole in Wyoming. Federal Reserve chair Jerome Powell is due to speak on Friday.

Nvidia, one of the biggest winners in this year’s artificial intelligence tech stock rally, saw shares jump as investors show optimism about its latest earnings report due on Wednesday. The company is expected to forecast quarterly revenue above analysts’ estimates as Nvidia’s stock is already up more than 200 per cent for the year so far.

Johnson & Johnson shares fell after the healthcare conglomerate said it was expecting to retain a stake of about 9.5 per cent in its newly-separated consumer health unit Kenvue.

Meanwhile Goldman Sachs was also lower after the bank said it was weighing the sale of a part of its wealth business.

Palo Alto Networks surged as the cybersecurity firm forecast late Friday annual billings above expectations.