Global stocks rise on positive data from China and the US

Euronext Dublin finishes the day up 2%, driven mainly by Paddy Power Betfair owner Flutter Entertainment

Permanent TSB which finished the day down 6.8%

Permanent TSB which finished the day down 6.8%

 

World stock markets rose on Tuesday, first on upbeat Chinese data and later on a solid increase in US factory output, while the dollar see-sawed on expectations the Federal Reserve will keep a downbeat economic outlook when policymakers meet this week.

DUBLIN

Euronext Dublin finished the day up 2 per cent, driven mainly by Paddy Power Betfair owner Flutter Entertainment, which saw its stock rise by more than 5 per cent.

“There was strong US data out overnight, as well as a deal announced between William Hill and ESPN, highlighting the importance of the partnerships that Flutter already has,” said a trader.

Irish banks mostly performed well following recent weaknesses. Bank of Ireland was up 2.4 per cent, while AIB was flat on the day.

One of the worst performers, however, was Permanent TSB which finished the day down 6.8 per cent.

In aviation the looming threat of Brexit and current travel restrictions were cited by a trader as the main reason Ryanair finished the day down 0.3 per cent.

Building material group Kingspan enjoyed a 4.5 per cent bounce in its share price after it agreed the terms of a new loan that would yield €750 million for the company.

“People are suggesting that they won’t be holding cash on the balance sheet so they think they will be looking to use those funds for acquisitions imminently,” said a trader.

Elsewhere, packaging company Smurfit Kappa was up 4 per cent, while building materials group CRH, which is the biggest component of the market, was up 3.2 per cent.

Kerry Group finished the day down 0.8 per cent, while hotel operator Dalata was down 3.2 per cent on light volumes.

LONDON

The UK’s FTSE 100 jumped 1.3 per cent, outperforming its European peers after a handful of positive corporate updates and better-than-expected jobs data.

Britain’s Hiscox surged 17 per cent to the top of Stoxx 600 as London judges ruled that some insurers were wrong to reject claims from small firms battered by the Covid-19 pandemic, but the costs were less than expected, according to the company.

The biggest risers on the FTSE 100 were Ocado, up 253p to 2,608p, Smurfit Kappa, up 148p to 3,068p, Flutter Entertainment, up 590p to 12,390p, RSA, up 22p to 492p, and M&G, up 6.55p to 157.75p.

EUROPE

Europe’s Stoxx 600 closed at a near three-week high as robust industrial output data from China boosted mining and luxury stocks, while Sweden’s H&M surged after reporting a profit rebound.

Shares in the world’s second biggest fashion retailer jumped 10.8 per cent, recording their biggest daily rise in almost six months after the company beat quarterly profit forecasts as it recovered more quickly than expected from a coronavirus-induced slump.

The broader pan-European Stoxx 600 index rose 0.7 per cent to close at its highest since August 27th, while euro zone stocks gained 0.4 per cent.

The bloc’s banks slid 1.5 per cent to become the worst-performing sector.

Elsewhere, Fiat Chrysler jumped 9 per cent and Peugeot maker PSA rose 2.2 per cent after the car-makers restructured the terms of their planned merger to conserve cash.

NEW YORK

On Wall Street, the Dow Jones Industrial Average rose 0.41 per cent, the S&P 500 gained 0.94 per cent, and the Nasdaq Composite added 1.55 per cent.

The S&P tech index jumped 1.6 per cent as it recovered for a second day from a plunge at the end of last week that had knocked the Nasdaq into corrective territory, defined as a 10 per cent slide from a recent peak. MSCI’s emerging markets index rose 0.71 per cent.

Apple rose 0.6 per cent ahead of a virtual product launch, while electric carmaker Tesla jumped 4.2 per cent, rising for the fifth day.

Carnival slid 8.8 per cent after it warned of a quarterly loss of $2.9 billion, as the Covid-19 pandemic brought the cruise industry to a virtual standstill. (Additional reporting: Agencies)