Investors already grappling with renewed Middle East tensions faced fresh pressure on Thursday after heavyweight pharma firm AstraZeneca reported disappointing results from a late-stage trial today.
The UK’s biggest pharmaceutical group’s shares fell by 6 per cent after the company said its nerve disease drug Wainua failed to meet its target in a late-stage trial to treat a heart condition.
Analysts warned the setback would cost the company’s management “a degree of credibility” since bosses had been confident the trial would succeed.
Dublin
The Iseq All-Share Index advanced marginally by 0.29 per cent to close at a near-record 13,816.29.
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Gene Murtagh’s Kingspan group led the day with a share price gain of more than 3 per cent, with shares up to €78.75.
Listed housebuilders Glenveagh Properties and Cairn Homes were also among the top performers of the day.
Shares in Michael Stanley-led Cairn Homes rose 2.8 per cent to €2.56. And shares in its industry rival Glenveagh, headed by Stephen Garvey, rose 2.4 per cent to €2.53.
Fidelity Investments vehicle FMR LLC, the Delaware-based investor, upped its stake in Cairn Homes during the day from 5.8 per cent to 6 per cent. JPMorgan Asset Management (UK) Limited also grew its holding from 7 per cent to 7.7 per cent in the builder.
Shares slumped in Kerry Group by 1.68 per cent to €82.20, while Glanbia shares fell 0.9 per cent to €24.22
London
The UK’s FTSE 100 ended slightly lower, down 0.2 per cent at 10,472.45, on Thursday following the 6 per cent hit to AstraZeneca’s share price, which offset gains in mining and bank stocks.
The blue-chip FTSE 100 index fell 0.2 per cent to 10,472.5 points, while the midcap FTSE 250 climbed 1 per cent to snap a three-day losing streak.
During the day, oil prices slipped more than 1 per cent, which dragged UK energy shares down 1.5 per cent. Shell’s share price fell 1.25 per cent.
Precious metal miners rose 4 per cent, tracking higher gold prices as a weaker dollar boosted bullion’s appeal, while industrial metal miners advanced 4.1 per cent, tracking higher base metal prices,
Banks added 2.2 per cent, with Lloyds and NatWest gaining 1.1 per cent and 1.8 per cent respectively.
Europe
European stocks have rebounded from losses triggered by the war in Iran. The pan-European Stoxx 600 index was up 0.7 per cent, with tech stocks up 2.6 per cent.
UBS Group AG strategists Gerry Fowler and Sutanya Chedda have raised their year-end target for the Stoxx Europe 600 Index to 690, from 630, which would imply gains of about 8 per cent from current levels.
“Time for less caution,” the strategists said. “We raise our Stoxx 600 targets because earnings are more resilient, better than expected.”
They also said that artificial intelligence-related upgrades have been stronger and banks continue to see positive revisions. Meanwhile, large defensive sectors are no longer dragging the index lower, helped by weakness in the euro.
These changes are enough to support earnings growth of more than 10 per cent, as well as higher valuations, they said.
New York
In early afternoon trading, there were broad gains in New York, with the Dow Jones up 0.3 per cent, the S&P 500 0.6 per cent higher and the Nasdaq climbed 0.7 per cent.
PepsiCo shares were down 3.5 per cent after it reported mixed second-quarter results, with organic sales growth slightly below consensus. Citigroup also posted US results that were softer-than-expected, but international organic sales growth was stronger-than-hoped-for.
Elsewhere, oil prices eased despite the return of fighting between the US and Iran. Brent crude for September delivery traded lower at $77.03 (€67.34) a barrel on Thursday, down from $80 on Wednesday.
US president Donald Trump said he expected the latest military flare-up to end quickly and left the door open to more talks. – Additional reporting Reuters, Press Association and Bloomberg
