Euronext Dublin dragged down by Paddy Power Betfair owner

Investors globally kept stocks close to record highs on bet the US Fed will resist policy shift

Peter Jackson, chief executive, Paddy Power Betfair, whose parent company Flutter Entertainment lost ground.

Peter Jackson, chief executive, Paddy Power Betfair, whose parent company Flutter Entertainment lost ground.

 

Investors worldwide kept stocks close to record highs on Tuesday, as they bet the US Federal Reserve will resist a significant policy shift in the face of transitory inflation.

Dublin

Euronext Dublin lagged some of its European peers as it finished the day down 1 per cent.

The index was mainly dragged by Paddy Power Betfair owner Flutter Entertainment which was down 3 per cent. The stock had been trailing by about 5 per cent at one stage during the day.

“There was a story about a negative research report on a US peer, and that seemed to have an impact on the stock,” noted a trader.

Another of the big names that underperformed was Ryanair, which finished the day down 0.5 per cent.

Elsewhere, AIB was down 2 per cent while Bank of Ireland was unchanged. Builders Cairn Homes and Glenveagh Properties were down 1 per cent and 0.5 per cent respectively.

Packaging company Smurfit Kappa also underperformed, finishing the day down 2 per cent. “They’ve been on a good run recently so they gave back some of those gain,” said a trader.

Among the food names, Kerry Group was unchanged while Greencore continued recent volatility by ending the day down 2.5 per cent.

London

The FTSE 100 equity index ended higher, lifted by gains in consumer staples and energy stocks, although a delay in lifting remaining Covid-19 restrictions in England curbed sentiment across the overall market.

The blue-chip index rose 0.4 per cent to its highest close since February 2020 highs. Dollar-earning consumer staples stocks, including Unilever, Reckitt Benckiser Group, British American Tobacco and Diageo gained between 0.58 per cent and 1.77 per cent.

Energy stocks gained 0.32 per cent as oil majors including BP and Royal Dutch Shell gained 0.7 per cent and 1.8 per cent respectively, tracking crude prices.

The domestically focused mid-cap FTSE 250 index fell 0.5 per cent. Travel and leisure stocks fell 0.8 per cent, with Flutter Entertainment and Entain among the top decliners.

Elsewhere, Boohoo Group gained 1 per cent after the British online fashion retailer reported a 32 per cent rise in sales in its latest quarter benefiting from rising demand as lockdown restrictions eased.

Europe

European shares rose for an eighth straight session, driven by optimism over an economic recovery this year, but gains were limited as investors hunkered down ahead of the Federal Reserve’s two-day policy meeting.

The pan-European Stoxx 600 ended 0.1 per cent higher at a record closing high of 458.81 points, also marking its longest winning streak in more than two years.

Germany’s Dax ended just below all-time highs as data showed consumer prices rose 0.5 per cent month-on-month in May, in line with economists’ expectations.

Insurance stocks were among the best performing sectors for the day, while basic resources stocks tumbled, tracking a drop in base metal prices. Travel and leisure stocks sank more than 2 per cent.

In company news, Sweden’s H&M, the world’s second-biggest fashion retailer, fell 2.9 per cent after its second quarter sales missed expectations.

Polish game developer CD Projekt topped the Stoxx 600 on hopes that its Cyberpunk 2077 game will be added back to Sony’s Playstation store.

New York

US stocks eased after the S&P 500 hit a record high earlier in the session, as a strong inflation reading for May raised caution that the Federal Reserve could taper monetary stimulus sooner than expected.

Nine of the 11 major S&P sectors slipped. Energy stocks added 1.5 per cent as oil prices hit multi-year highs on positive demand outlook. The communication services sector dropped 0.2 per cent after hitting a record high earlier in the session.

In corporate news, Biogen dipped 0.7 per cent after the drugmaker’s potential therapy for choroideremia, an inherited disease that leads to vision loss, did not meet the main goal in a late-stage study.

Ocugen jumped nearly 9.1 per cent as the drug developer prepares for potential commercial manufacturing of its Covid-19 vaccine candidate, Covaxin, in the United States and Canada. (Additional reporting: Agencies)