European shares rose on Wednesday with heavyweight ASML jumping after a report that the Dutch chip equipment manufacturer would be exempted from a new US rule on foreign chip equipment exports. A slate of positive company earnings reports also helped stocks make gains.
Meanwhile, the Federal Reserve will conclude its two-day policy meeting later in the day where investors expect the US central bank to lay out the groundwork for a September interest rate cut.
DUBLIN
The Iseq index climbed 0.6 per cent, with the Dublin market lifted into positive territory by a strong gain for Kerry. The food group jumped 6.4 per cent to €86.40 after it raised its full-year guidance for earnings, despite a slump in revenues as softer pricing hit its Irish dairy and its taste and nutrition businesses.
The group said it purchased €279 million of its shares in the first half and would start another share buyback programme when the current scheme concludes.
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Kingspan was another riser, adding 0.5 per cent to also close at €86.40, while Bank of Ireland finished up 0.6 per cent at €10.48. However, Ryanair declined 2.2 per cent to €14.64 and AIB ended 1.1 per cent lower at €5.30.
LONDON
Stocks ended July on a high note, supported by gains in energy and mining stocks and positive corporate updates, while investors eagerly awaited the Fed’s decision. A Bank of England decision also loomed on Thursday.
The blue-chip FTSE 100 index gained 1.1 per cent to log its best month since April, while the FTSE 250 index added 0.8 per cent as the midcaps had their best month this year.
Energy shares jumped 2.3 per cent, as the index rebounded from Tuesday’s losses. Top players such as BP and Shell gained more than 1.6 per cent and 2.7 per cent respectively, after oil prices rose.
HSBC climbed 4 per cent after the bank pledged to buy back $3 billion in shares and reported stable first-half profit that beat estimates.
EUROPE
The pan-European Stoxx 600 index finished 0.8 per cent higher, touching a more than two-week high earlier in the session, clocking a monthly advance of more than 1 per cent.
The tech sector led gains across the major Stoxx sectors, jumping 2.6 per cent with ASML surging 5.6 per cent following a Reuters report that signalled it may be spared many of the new US restrictions being considered on exports to China.
The aerospace sector added 1.3 per cent, with Airbus climbing 4.8 per cent after the world’s largest aircraft manufacturer published better than expected second-quarter results.
Spain’s benchmark equity index bucked the trend, clocking a 1.2 per cent decline. Spain’s BBVA reported a slower net profit growth in its main market in Mexico in the second quarter, overshadowing a 38 per cent year-on-year rise in overall profit that topped market expectations. Its shares fell over 4 per cent as the lender will not buy back more shares until its offer for rival Sabadell finishes.
NEW YORK
The Nasdaq and the S&P 500 rose more than 1 per cent in early trading after a bullish forecast from AMD boosted struggling chip stocks, while Microsoft faltered.
Advanced Micro Devices soared 10.1 per cent after lifting its 2024 forecast for AI-chip sales, spreading the cheer to Nvidia, which rose 10.2 per cent.
Microsoft lost 1.6 per cent as it plans to spend more this fiscal year to build its AI infrastructure, even as growth in its cloud business slowed —another sign that the payoff from hefty investments in the technology could take longer than hoped.
Additional reporting: Reuters
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