European shares hit near nine-month high

European shares hit a near nine-month high on Monday, with real-estate and retail stocks helping offset losses in commodity-linked sectors.

The US markets were closed for Martin Luther King Day, helping to add to the largely subdued tone across the day’s trading.

Dublin

The Irish index of shares ended the day marginally higher at 7,825, an increase of 0.13 per cent.

Bank shares were broadly lower, with AIB down 1.6 per cent at €3.65 and Bank of Ireland off 1.65 per cent, closing at €8.96. Permanent TSB bucked the trend, gaining 1.5 per cent over the session, ending the day at €2.03.

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Construction stocks gained ground. CRH was up 1 per cent, while Glenveagh Properties and Cairn Homes added 1.2 per cent and 0.9 per cent respectively.

Packaging giant Smurfit Kappa saw its shares climb 2.2 per cent to €39.47, while food group Glanbia shares rose to €11.87, a gain of 2.15 per cent over the course of the day.

Ryanair shares rose 1 per cent, while Dalata Hotel Group was largely stable at €3.84.

Flutter Entertainment was 1.1 per cent lower.

London

Trading in London was cautious but still continued its positive run as further declines in natural gas and crude oil prices helped support trading. The FTSE 100 inched closer towards record levels on Monday but stopped short of an all-time high, ending the day up 16 points, or 0.2 per cent, at 7,860.07.

In company news, Marks & Spencer shares made gains after the high-street bellwether announced plans to ramp up its store overhaul with aims to open 20 new shops across the UK in a move that will create more than 3,400 jobs, part of a £480 million (€540 million) investment in its store estate

The group said that over the next financial year it will open eight full-line stores in shopping centres such as the Bullring in Birmingham and the Trafford Centre in Manchester, as well in as retail parks and high streets across key cities.

Investors welcomed the growth plans, sending shares up 4.2p to 150.1p at the close.

Elsewhere, guarantor lender Amigo tumbled after it said it was struggling to convince investors to help pay off what it owes to customers mis-sold loans they could not afford.

The troubled firm said it had not managed to find a so-called “cornerstone” investor to help it raise £15 million for customers, blaming the “economic backdrop”.

As a result, shares in the company dropped by 0.96p to 2.94p on Monday.

Sainsbury’s improved by 2.3p to 243.3p at the close after launching a new grocery delivery partnership with Just Eat.

Sterling was nervy ahead of a key week of economic updates, including UK unemployment and inflation data.

The pound was down 0.10 per cent against the dollar at 1.221 and was just 0.01 per cent lower against the euro at 1.128 at the close.

Europe

The pan-European Stoxx 600 closed up 0.5 per cent at 454.6 – its highest level since April 2022 – as global equities continued to build on a new year rally spurred by hopes of a rebound in China’s economy and an easing of prices pressures in the United States and Europe.

The Stoxx 600 index has gained 6.6 per cent since the start of the year, as warmer weather added to hopes of an easing in the European energy crisis brought on by the Russia-Ukraine war.

Germany’s Dax and France’s CAC 40 climbed 0.3 per cent each.

In company news, Temenos jumped 8.9 per cent after chief executive Max Chuard quit the Swiss financial software company, which has been under pressure from activist shareholders.

Swiss construction chemicals maker Sika added 3.5 per cent after agreeing to sell part of its admixture business to UK-based chemical and energy group INEOS.

German arms maker Rheinmetall gained 2.8 per cent on acquiring a stake in Dutch IT hardware specialist Incooling. – Additional reporting: Reuters, PA