European shares advanced at the end of a turbulent week tracking Wall Street gains, but hit weekly losses, while a hotter-than-expected US jobs report indicated interest rates might remain elevated for longer, pushing bond yields higher.
Data showed US non-farm payrolls increased by 336,000 jobs last month – almost double the 170,000 forecast of economists polled by Reuters.
Dublin
The Iseq closed up 0.4 per cent as most of its biggest stocks posted gains. Insulation company Kingspan was the top performer in the session, rising 3.2 per cent to €70.78, while Bank of Ireland and AIB both advanced. Bank of Ireland added 1.5 per cent to €9.15, while AIB closed 1.7 per cent higher at €4.08.
Among other key stocks on the Irish market, packaging group Smurfit Kappa rose 0.5 per cent to €31.46 and Paddy Power-owner Flutter Entertainment edged up 0.3 per cent to €153.85. Ryanair closed up 0.3 per cent at €16.00.
Food group Kerry was unable to join in the trend, however, declining almost 3.2 per cent to €75.92.
London
The blue-chip FTSE 100 closed higher supported by energy and financial stocks, but logged a sharp weekly loss as soaring government bond yields on expectations of higher interest rates roiled global equity markets. The main FTSE 100 index rose 0.6 per cent, while the mid-cap index added almost 0.8 per cent.
Shares in Aviva shot up 5.3 per cent after sources told Reuters it was among a small handful of insurers exploring bids for the British consumer operations of rival RSA.
Oil majors BP and Shell climbed 1.3 per cent and 1.9 per cent respectively, tracking firm crude prices, while miners added 1.3 per cent as traders prepared for the reopening of China markets on Monday after the Golden Week holiday.
Nevertheless, both the main UK indexes recorded weekly losses amid fears about central banks keeping interest rates elevated.
Europe
The pan-European Stoxx 600 index rose 0.8 per cent, although the benchmark Stoxx index declined for the third consecutive week. The index hit a six-month low earlier this week as the US and European bond yields surged to multiyear highs on robust US data, which prompted expectations that borrowing costs will remain higher for a longer period.
Most major European sub-sectors ended higher. Leading gains retailers rose 2.3 per cent boosted by a more than 6 per cent jump in Zalando as investors rushed to buy the stocks at lower prices in hope of resilient third-quarter results amid a weak retail sector.
Tech stocks gained nearly 2 per cent mirroring Wall Street sentiment. But the food and beverage index fell 1.8 per cent, with shares of food company Nestle down more than 2 per cent as investors weighed the potential impact of Novo Nordisk’s blockbuster weight-losing drug Wegovy and how it could reduce spending on food.
Danone and Unilever were also down 1.2 per cent and 2.6 per cent lower respectively.
US
Wall Street’s main indexes fell in early trading after a strong jobs report deepened fears that interest rates may stay elevated for an extended period, although all three – the Dow Jones, the S&P 500 and the Nasdaq – had turned positive by 6pm Irish time.
US job growth surged in September, suggesting that the labour market remains strong enough for the Federal Reserve to raise interest rates this year, though wage growth is moderating.
Tesla fell 2.2 per cent after cutting prices of its Model 3 and Model Y vehicles in the US, while Exxon Mobil lost 2.3 per cent after sources told Reuters that the oil producer was in advanced talks to acquire Pioneer Natural Resources. – Additional reporting: Reuters
