European stocks lifted on Thursday afternoon in the wake of the European Central Bank’s (ECB) latest interest rate announcement. Although the ECB raised rates for the 10th time in less than a year, the central bank indicated that they may now be at their peak.
Meanwhile, US stocks also advanced as hotter than expected economic data did not dent hopes that the Federal Reserve may pause rate hikes in September.
Dublin
In Dublin, the Iseq All Share rose by 2.25 per cent, closing at 8,696.11.
In the wake of ECB interest rate news, it was a strong afternoon for European banks. In Ireland, AIB rose by 2.95 per cent to €4.11, while Bank of Ireland saw an increase of 1.26 per cent to €8.85. Permanent TSB lost 0.96 per cent, closing at €2.07.
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Building materials giant CRH was up 3.51 per cent on Thursday, reaching €51.30. The company is set to delist from the Irish Stock Exchange next week.
Smurfit Kappa shares rose 3.55 per cent to €33.55 on Thursday. Following a slump on Tuesday when news initially broke, the rise may indicate that investors are beginning to accept the packaging company’s merger with US contemporary WestRock.
Another Iseq heavyweight in the midst of merger news, Kingspan saw shares rise by 4.19 per cent on Thursday, to €71.16. The insulation and construction products company recently confirmed it had “informal” merger discussions with Arizona-based Carlisle, but said at the moment there is “no active engagement”.
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One of two home builders listed on the Irish stock market, Glenveagh Properties saw its shares rise 4.79 per cent, to €1.01. The group published interim results for the first half of 2023 on Thursday morning, expressing confidence in its capacity to generate “strong revenue and profit growth” into 2024.
Paddy Power parent company Flutter Entertainment closed up 4.05 per cent, at €169.75, while healthcare services business Uniphar fell 4.58 per cent on Thursday, closing at €2.50.
Despite a strong trading period, Uniphar reported a decline in profits in the first half of the year on Thursday, due to rising interest rates and costs associated with the integration of newly acquired companies.
London
In London, the exporter-heavy FTSE 100 Index rose 1.95 per cent to 7,673.08, while the more domestically focused FTSE Mid-Cap 250 also rose by 1.38 per cent to 18,817.49.
London-headquartered rail ticketing company Trainline saw shares rise 11.56 per cent, as the firm surprised investors with a stronger than expected performance in the first half of the financial year.
Shares in Hilton Food Group jumped by 7.58 per cent, as the group announced on Thursday that it has signed a long-term agreement with Walmart Inc to supply its Supercentres in Canada.
Rio Tinto and Anglo American climbed 4.73 per cent and 7.74 per cent respectively, after broker JP Morgan raised its price target on both miners.
Europe
The pan-European Stoxx 600 rose 1.52 per cent on Thursday, to 460.86, bolstered by positive signs from the ECB that it may be coming to the end of its monetary policy tightening cycle.
[ Analysis: ECB interest rate increases are probably overOpens in new window ]
Meanwhile, the German Dax rose by 0.97 per cent to 15,805.29, and the French CAC 40 saw a lift of 1.19 per cent to 7,308.67.
New York
Wall Street advanced and crude prices surged on Thursday as robust economic data failed to budge expectations that the Federal Reserve will leave its key interest rate unchanged next week.
US retail sales rose more than expected in August, mostly boosted by higher gas prices, as spending on other items grew more modestly.
A broad rally sent all three major stock indexes higher, with the continued upward trajectory of oil prices putting energy stocks on top.
Chip designer Arm Holdings made its widely anticipated debut on the Nasdaq on Thursday, with the company valued at $54.5 billion (€51.2 billion), and stock prices rising beyond the initial IPO share price of $51.
Chipmakers including Nvidia, Micron Technology and Broadcom also rose in the wake of Arm Holdings’ strong debut. – Additional reporting: Reuters
