Global shares mixed on US inflation data

Global stocks fluctuated on Thursday after the latest US consumer price index showed a steady moderation in underlying inflation pressures, adding to hopes that the Federal Reserve will opt to keep interest rates unchanged at its next meeting.

Dublin

The Iseq followed up Wednesday’s 0.4 per cent drop with a 0.6 per cent decline, with the index dragged lower by some of its larger constituents.

Ryanair in particular fell by close to 1.8 per cent to €15.59 per share in line with broader trends in the airline sector. Its UK rival EasyJet helped pull down the wider sector despite updating its profit forecast on Thursday. Shares in the low-cost airline fell 8 per cent, with markets remaining sceptical over its profit targets, traders in Dublin said.

Paddy Power-owner Flutter was the other big loser on the day, shedding 1.5 per cent to €157.20 per share in line with similar moves across the gambling sector.

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Woodies DIY-parent Grafton Group and insulation-maker Kingspan also traded lower on the day after their British rival Travis Perkins slashed its profit forecast on Wednesday.

Europe

European stocks fluctuated on US CPI data and comments from European Central Bank governing council members indicating that the interest rate peak may have passed. Bank of Portugal governor Mario Centeno told CNBC: “Bar additional shocks that we don’t see coming, of course, we will be done, that’s my interpretation of the decision in September.”

After gaining as much as 0.5 per cent earlier in the day the benchmark Stoxx 50 finished down 0.1 per cent on the session, while the pan-European Stoxx 600 index was up by the same amount.

Tech stocks were among the biggest gainers. Ahead of its quarterly results release next week Dutch chipmaker ASML added more than 2.8 per cent, while its German rival Infineon was up by more than 1 per cent.

Luxury names traded lower on the session with Ray-Ban owner EssilorLuxottica down 0.5 per cent, LVMH down 1.6 per cent and Kering off by 2.6 per cent.

Adding to recent gains Novo Nordisk gained 4.1 per cent after the Danish drug-maker said earlier this week it would stop a trial studying Ozempic to treat kidney failure in diabetes patients in advance of schedule because it was clear from an interim analysis that the treatment would succeed.

London

The UK’s blue-chip FTSE 100 touched a two-week high on Thursday, finishing the session up by close to 0.3 per cent.

Adding more than 35 per cent, the biggest upward mover on the FTSE All Shares index was the Restaurant Group. The Wagamama-owner announced it has agreed to a takeover by private equity firm Apollo Global for €506 million (€590m) after a year of financial struggles.

Industrial metal miners gained 1.7 per cent, while precious metal miners were up 2.0 per cent as prices of metals such as copper and gold rose. Oil majors Shell and BP advanced 1.32 per cent and 3 per cent as crude prices moved higher.

Meanwhile, Mobico tumbled 27.2 per cent to the bottom of the midcap index after the transport firm lowered its profit forecast for the year and suspended dividends as it grapples with high costs.

New York

The main US indices were little changed despite a jump in US consumer price inflation as rental costs surged. However, a steady moderation in underlying inflation pressures supported market expectations that the Federal Reserve would not raise interest rates next month.

The so-called core CPI, which excludes food and energy costs, increased 0.3 per cent last month. From a year ago it rose 4.1 per cent, the lowest since 2021.

Delta Air Lines added 0.3 per cent after its quarterly earnings beat analysts’ estimates, but the carrier cut the high end of its outlook for 2023 profit on rising fuel prices and larger-than-expected aircraft maintenance costs.

Walgreens Boots Alliance, up close to 6 per cent, prepared for the arrival of its new chief executive officer with a $1 billion cost-cutting programme while it issued 2024 profit guidance shy of Wall Street estimates.

Meanwhile, Ford shed close to 1.7 per cent after it became the latest strike target for the United Auto Workers after members walked out of its largest plant, a highly profitable pickup factory in Kentucky. – Additional reporting: Reuters, Bloomberg