Markets fall but still post biggest monthly gain on November’s vaccine joy

Dalata among the gainers on Iseq while Providence Resources and AIB fall

It was the Stoxx Europe 600 Index’s biggest monthly gain on record on the prospect of easing coronavirus restrictions and hopes for a Covid-19 vaccine. Photograph: iStock

It was the Stoxx Europe 600 Index’s biggest monthly gain on record on the prospect of easing coronavirus restrictions and hopes for a Covid-19 vaccine. Photograph: iStock

 

European stocks slipped in late trading on Monday, but still managed to post their biggest monthly gain ever, with a sharp rotation into value shares sending the Stoxx Europe 600 Index up 14 per cent in November.

It was the benchmark stock index’s biggest monthly gain on record on the prospect of easing coronavirus restrictions and hopes for a Covid-19 vaccine.

US stocks fell from records as investors assessed the prospects for risk assets after a blistering month-long rally. Crude oil declined.

Dublin

The Iseq finished the session down by 0.55 per cent, but it was up overall in November by 13 per cent.

Among the gainers was the country’s largest hotel group Dalata, the owner of the Clayton and Maldron brands. It finished ahead by 3.3 per cent to €3.79 per share, as the hospitality sector gears up for a December reopening.

Despite signing a partnership deal for its Barryroe prospect off Ireland’s southern coast, Providence Resources fell by 21 per cent to close at 7.1 cents per share. It was also affected by the fall in crude, which also weighed on the Irish listing of Tullow Oil. It fell 2.7 per cent to close at 32 cents per share.

Ahead of its investor update this week, AIB fell by 1.7 per cent to €1.50.

London

The blue-chip FTSE 100 fell 1.6 per cent, after clocking gains of 12.4 per cent in November, its best month since January 1989.

The domestically-focused FTSE 250, considered a barometer for Brexit sentiment, fell 0.7 per cent, its best month since the global financial crisis in 2009.

Pets at Home Group fell 1 per cent after buying veterinary telehealth provider The Vet Connection for £15 million pounds (€16.75 million).

Lloyds Banking Group added 1.8 per cent after recruiting HSBC Holdings’ Charlie Nunn as chief executive.

Europe

The pan-European Stoxx 600 index lost 1 per cent at the end of a month that saw it surge nearly 14 per cent. France’s Cac 40 jumped 20 per cent this month, while Spain’s Ibex and Italy’s MIB rose more than 22 per cent each in November. German shares gained more than 12 per cent over the month.

The worst Stoxx performer on Monday was Dutch bank ABN Amro, down 8.9 per cent after saying it would cut almost 3,000 jobs by 2024.

Siltronic shares, meanwhile, jumped 7.6 per cent after the German silicon wafer maker said it was in advanced talks to be bought by Taiwan’s GlobalWafers in a €3.75 billion deal.

Germany’s main Dax index gave up its gains at the close, ending down 0.3 per cent with consumer and healthcare stocks leading declines. Data on Monday showed that a newly introduced VAT cut pushed annual consumer prices lower further in November.

New York

IHS Markit topped gains on the benchmark S&P 500 after data giant S&P Global agreed to buy the financial information provider in a $44 billion (€36.82 billion) deal, which will be the biggest corporate acquisition of 2020.

Shares of Moderna surged as much as 18 per cent on Monday after the company said it plans to request clearance for its coronavirus vaccine in the US and Europe.

Macy’s and Kohl’s slipped between 2.5 per cent and 5 per cent as masked shoppers turned up in smaller numbers at major US retailers on Black Friday as early online deals and concerns about a spike in Covid-19 cases dulled enthusiasm for mall trips.

Nikola sank 23 per cent as the company and General Motors announced a reworked deal on a fuel-cell partnership that eliminates an equity stake in the startup for the Detroit automaker and plans for building its electric pickup truck.

– (Additional reporting: Reuters/Bloomberg)