European shares ended the week with healthy gains as upbeat risk sentiment prevailed globally following a slew of US data. The focus now turns to the keenly awaited speech by Federal Reserve chairman Jerome Powell at next week’s Jackson Hole event.
US retail sales data on Thursday signalled resilient consumer spending, allaying fears of an imminent recession in the world’s largest economy.
Dublin
The Iseq nudged 0.1 per cent lower as several of its most active stocks lost ground. Ryanair was among the fallers, slipping 1 per cent to €14.83, while insulation-maker Kingspan shed 0.5 per cent after results to close at €81.70.
There were contrasting fortunes for the banks, with AIB ending the session down 0.5 per cent at €5.17 and Bank of Ireland edging up 0.2 per cent to €10.12. Both stocks had made strong gains on Thursday.
Kerry also had a positive day, rising 0.6 per cent to €88.65, while Cairn Homes climbed 2.6 per cent to €1.89.
London
The FTSE 100 was the weakest among its major European peers, ticking 0.4 per cent lower after UK retail sales rose 0.5 per cent in July. The positive retail sales data prompted a rise in sterling, sending the exporters on the blue-chip index down. The domestically focused FTSE 250 limited its losses to 0.2 per cent.
The 0.5 per cent rise in retail sales was in line with expectations after a weak performance in June weighed on economic growth, indicating that the squeeze on British consumers from high inflation in 2022 and 2023 is beginning to ease.
Among individual stocks, Ladbrokers parent Entain rose 2.7 per cent after analysts at Goldman Sachs upgraded the gambling group’s stock to “neutral” from “sell”.
Europe
The pan-European Stoxx 600 index rose 0.3 per cent on the day, still hovering at its two-week high and logging its best week since May 6th. For the week, the index was up 2.4 per cent.
Italy’s FTSE MIB outperformed peers on Friday with a 2.2 per cent gain.
The automobile sector was the top gainer for the day, rising 1.2 per cent boosted by gains in Ferrari, which rose 3.1 per cent, and Stellantis, which gained 1.9 per cent despite the European-American automaker being sued by shareholders in the US, who said the firm defrauded them by concealing rising inventories and other weaknesses.
Bayer jumped 10.4 per cent after it won a legal victory in its fight to limit liability from claims that its Roundup weed killer causes cancer.
UBS gained 0.7 per cent after the Swiss bank said it will liquidate a $2 billion (€1.8 billion) real estate fund it acquired when it bought Credit Suisse.
New York
Wall Street indices were in positive territory as of about 6pm Irish time on Friday, as investors digested a spate of encouraging economic data that dispelled slowdown concerns and put US markets on course for their best weekly performance this year.
The S&P 500 and the Nasdaq have nearly recouped all of their losses from a rout that pushed the Nasdaq into correction territory two weeks ago as better-than-expected data calmed nerves over a recession in the world’s largest economy.
Applied Materials dropped over 3 per cent following a strong jump in advance of its results. The chip-making equipment firm forecast fourth-quarter revenue slightly above Wall Street estimates.
US-listed shares of Amcor slipped 6 per cent after the packaging company reported a more-than-expected decline in fourth-quarter sales, hurt by weaker demand for its containers and cartons.
Shares of mpox vaccine developers Emergent BioSolutions and GeoVax Labs climbed after cases of mpox were reported outside Africa. – Additional reporting: Reuters/Bloomberg
