Europe’s benchmark stock index was subdued on Monday, erasing early gains, with investors bracing for key US inflation numbers to gauge the Federal Reserve’s monetary policy path amid lingering recession fears and a deluge of other European data.
US consumer and producer prices data, as well as flash numbers for employment and economic growth in the euro zone, are all due this week.
Dublin
The Iseq nudged lower, with the index finishing the session down 0.1 per cent. It was dragged into the red by a 1 per cent fall for Ryanair, which closed at €14.91, while Bank of Ireland also slipped, finishing down 0.9 per cent at €9.41. AIB retreated 0.4 per cent to just under €5.
There was a gain for Cairn Homes, however, which rose 1.5 per cent to €1.81, while Kerry added 0.9 per cent to finish at €86.85 and Kingspan edged 0.4 per cent higher to €80.85.
Your work questions answered: Can bonuses be deducted pro-rata during a maternity leave?
Palantir, company at centre of row surrounding TD Eoin Hayes, is no stranger to controversy at home or abroad
Tips for avoiding a January credit-card hangover
Can I work for my foreign employer from my home in Ireland?
London
London stocks managed to kick off the week on a positive note, supported by resources-linked shares amid rising oil and metal prices, while BT Group shares surged after India’s Bharti took a stake in the telecoms firm.
The blue-chip FTSE 100 index was up 0.5 per cent at close, while the mid-cap FTSE 250 index gained 0.3 per cent.
Precious metal miners led gains among the major FTSE 350 sectors, climbing about 2 per cent tracking an advance in gold prices.
Energy shares gained 1 per cent as oil prices firmed for the fifth straight session on easing US recession fears and growing anxiety of a broader conflict in the Middle East.
BT Group jumped 8.4 per cent after India’s Bharti Enterprises said it would acquire a 24.5 per cent stake in the telecom giant, buying out its top shareholder.
British insurer Lancashire Holdings rose 4.5 per cent to the top of the mid-cap index, extending gains after rising about 6 per cent in previous session.
Inflation, wages and GDP data for the UK are scheduled to be released this week.
Europe
The Stoxx 600 index closed on a flat note, after last week’s muted performance as the continentwide index rebounded from last Monday’s sharp sell-off in risk assets on US recession fears.
Energy and basic resources led sectoral gains, tracking a strong rise in oil and metal prices, while real estate was the worst hit with a 0.9 per cent decline.
Insurance stocks were also among top gainers, as Hannover Re climbed 5 per cent after the German reinsurer reported better-than-expected results.
Orlen rose nearly 5 per cent after Poland’s top refiner reported preliminary second-quarter results above estimates.
Vestas dropped almost 8 per cent after the world’s largest wind-turbines maker warned of a second-quarter loss and trimmed its full-year profit margin and revenue outlook.
US
Wall Street stocks struggled for direction as investors braced for a slew of economic data this week. By lunchtime in New York, most of the “Magnificent Seven” stocks were lower, with Tesla leading the losses, falling 1.8 per cent. Nvidia rose 4 per cent and was on track to add nearly $100 billion in market value.
Investors are likely to be on edge until Wednesday’s US consumer price index (CPI) reading, while retail sales data is due on Thursday. Earnings reports from Walmart and Home Depot will also be crucial for clues on consumer spending in the world’s largest economy.
Starbucks climbed 3.5 per cent on reports that activist investor Starboard Value, which holds a stake in the coffee giant, wants the company to take steps to improve its stock price. KeyCorp jumped nearly 11.9 per cent after Canada’s Scotiabank bought a minority stake in the US regional lender.
Additional reporting: Reuters
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
