Global stock markets rose on Wednesday as US consumer confidence rebounded in December, and the dollar regained stability after the Bank of Japan rocked markets with a surprise decision to loosen its grip on government bond yields.
Dublin
At home, Euronext Dublin finished the day up 1.9 per cent on Wednesday, as its heavy-hitters helped it outperform many of its international peers.
Building materials group CRH and Paddy Power Betfair parent Flutter were both up 2 per cent at close of business.
Almost all sectors finished up 2-3 per cent, and the index was also boosted by budget airline Ryanair which outperformed its peers, finishing the day up 4 per cent. EasyJet was up 2 per cent and Aer Lingus parent International Airlines Group jumped 1.5 per cent.
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Irish builders also enjoyed a positive day as Cairn Homes added 4 per cent to its share price, while Glenveagh Properties was up 2.5 per cent.
Staying with construction, Woodie’s parent Grafton Group ended the day up 1.5 per cent, while insulation specialist Kingspan was up 1.1 per cent. “Kingspan has had a rough run over the past few days, but it arrested that today,” noted a trader.
Elsewhere, box-maker Smurfit Kappa finished up 1.5 per cent, while Kerry Group underperformed somewhat but finished up 1 per cent.
London
The FTSE 100 closed up 1.7 per cent, boosted by retail giant JD Sports which saw its share price jump by more than 6 per cent.
Frasers Group and Next shot towards the top of London’s leading index, helping to lift it higher. In other company news, shares in struggling Cineworld dropped further after rival cinema chain Odeon owner AMC Entertainment pulled out of talks to buy the company.
It said negotiations would not be continuing after revealing it had been in talks with lenders to rescue the bankrupt chain. Shares in Cineworld slipped by 5.3 per cent, having already plunged by more than 80 per cent over the past six months.
Elsewhere, shares in specialist distributor Bunzl also slipped despite the FTSE 100-listed firm telling shareholders it is set to see its total revenues rise by about 17 per cent in 2022.
The company said it was seeing a boost in demand for its cheaper products as firms seek value amid cost pressures.
Nevertheless, shares in Bunzl were down almost 1 per cent, enough to mean the group hit the bottom of the FTSE 100 on Wednesday.
Europe
European markets enjoyed a boost as investors flocked to cash in on retail stocks ahead of the post-Christmas sales.
The French Cac jumped by 1.98 per cent and the German Dax was 1.49 per cent higher.
European shares more than recovered the previous day’s 0.4 per cent drop, helped in part by a rally in sportswear stocks.
The Stoxx 600 rose about 1.6 per cent, led by the retail sector, including Nike’s German rivals Adidas and Puma.
New York
US stocks rose after better-than-expected earnings from FedEx and Nike and an improvement in consumer confidence boosted sentiment.
The S&P 500 jumped as much as 1.8 per cent, with more than 95 per cent of its stocks rising. The tech-heavy Nasdaq 100 also jumped more than 1 per cent. The Dow Jones climbed 1.53 per cent.
FedEx and Nike’s earnings exceeding Wall Street’s estimates provided a reprieve for US stocks that had been hammered since the Federal Reserve’s hawkish turn last week.
Traders are also parsing fresh US data on Wednesday indicating the Fed’s persistent rate hikes are serving their purpose, but a recession may still be at bay.
While sales of previously owned US homes fell for a 10th-straight month in November, US consumer confidence rose by more than forecast to the highest since April as inflation eased and gasoline prices dropped.
- (Additional reporting: Agencies)
