Markets buoyed on renewed hopes for Brexit deal

Global stocks benefited on Tuesday on the back of buoyed hoped in relation to a Brexit deal and the fast-tracking of a Covid-19 vaccine.

DUBLIN

Euronext Dublin was flat on the day but a number of listed companies benefited from increased hopes that a Brexit deal could be struck.

"Bank of Ireland, Dalata Hotels and AIB are all seen as potential beneficiaries of a positive Brexit outcome," noted one trader, as Bank of Ireland finished the day up 4.9 per cent; Dalata up 4.5 per cent; and AIB up 3.8 per cent.

However, there was more bad news for building materials group Kingpsan, which was down 4 per cent at close of business on the back of fallout from the Grenfell Tower inferno inquiry.

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Elsewhere, Irish Residential Properties finished the day down 3 per cent, while its peers Glenveagh Properties and Hibernia Reit shed 2.5 per cent and 1.5 per cent respectively, albeit on very light volumes.

LONDON

British mid-cap stocks gained ground in the final hour of trading as renewed hopes of a Brexit trade agreement overshadowed concerns over a weak labour market report and concerns over new restrictions in London.

The domestically focused Ftse 250 index recouped early losses to end about 0.5 per cent higher as a BBC journalist tweeted that the UK and the European Union were heading towards a trade deal that would satisfy Brexit supporters.

A sharp rise in sterling helped the blue-chip Ftse 100 index pare its losses to about 0.3 per cent with consumer staples weighing the most.

JD Sports, Britain's biggest sportswear retailer, bought retailer Shoe Palace for $325 million in a move that would expand its footprint on the US west coast. However, its shares ended 0.9 per cent lower after more than doubling in value this year.

EUROPE

European shares rose after the European Union moved up the date to approve a Covid-19 vaccine.

This pushed the pan-European Stoxx 600 index up 0.3 per cent, while Germany’s Dax jumped 1 per cent for its best day in three weeks.

Volkswagen led gains on the index, up 7.6 per cent, after its supervisory board said chief executive Herbert Diess had its full support as he leads a new team, averting a leadership crisis. This sent Europe's auto sector up 3 per cent.

Among other stocks, H&M shares dropped almost 3 per cent after the world's second-biggest fashion retailer said local-currency sales fell 10 per cent in its fourth quarter, with a big slowdown in the final month due to the pandemic.

But retail sector losses were tempered by a 3 per cent jump in JD Sports.

NEW YORK

US stock indexes rose as progress toward a massive government stimulus Bill kept spirits high, while investors hoped for continued signals of easy monetary policy from the Federal Reserve’s final meeting of the year.

Apple was the top boost to all three US benchmarks, rising 3.5 per cent to a more than three-month high after a report said it planned to increase iPhone production by 30 per cent in the first half of 2021.

Technology stocks added 0.9 per cent. The sector has outperformed its peers through the pandemic due to its perceived resilience to virus-related disruptions.

Eli Lilly rose 3.8 per cent after the company said it would buy Prevail Therapeutics in a deal potentially valued at $1.04 billion, to expand its presence in the lucrative field of gene therapy. Prevail's shares surged about 83 per cent.

Moderna's shares fell 4.8 per cent, even though US Food and Drug Administration staff members did not raise any new concerns over data on the drug maker's Covid-19 vaccine. A report said the vaccine would gain emergency use approval on Friday.

The S&P index recorded 11 new 52-week highs and two new lows, while the Nasdaq recorded 116 new highs and 17 new lows.