Markets post weekly loss ahead of ECB rates decision

European stocks logged weekly losses despite gaining on Friday, as investors fretted over a worsening outlook for the economy and the trajectory of US interest rates, while the focus shifts to central bank action next week.

Dublin

The Irish index of shares ended the day in positive territory, shrugging off a slow morning to close at 8,627.

Banking shares were mixed, with Bank of Ireland adding 2 per cent to close the week at €8.80, while AIB lost some ground over the day to end at €3.95, losing 0.4 per cent.

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Flutter Entertainment was up 2.2 per cent to €166.20, while Glanbia added almost 2.6 per cent over the session.

Smurfit Kappa continued to lose ground, following yesterday’s 3.7 per cent decline on the news that it was mulling a merger that would see it exit the Irish Stock Exchange. The packaging company is in merger talks with US peer WestRock in what would create a cardboard box-making giant with a market value of close to $20 billion (€18.7 billion).

Kerry was also off the pace, ending the session down 0.5 per cent, while CRH was largely flat.

London

London’s top indexes warmed up on Friday after a broadly tepid trading session, amid a boost from consumer firms and retailers.

JD Sports and Next were among the consumer-oriented stocks to help the FTSE, after the high-street brands received positive broker notes.

The FTSE 100 moved 0.49 per cent, or 36.47 points, higher to finish at 7,478.19.

Housebuilder Berkeley Group failed to excite after it reported a slump of more than a third in home reservations, flagging high inflation and interest rates weighing on the sector.

The group stood by its profit expectations despite its gloomy outlook for the UK economy.

Shares in the company remained at 3,972p at the close despite volatility during Friday’s trading session.

Round Hill Music Royalty Fund jumped sharply on Friday after Alchemy Copyrights agreed a takeover deal for the firm worth $468.8 million (€437.2 million).

Rival fund Hipgnosis saw its shares increase by to 92.3p as investors cheered the valuation of the takeover deal.

Europe

The pan-European STOXX 600 index added 0.2 per cent, snapping a seven-day losing streak, but declined 0.8 per cent for the week. Germany’s Dax index was 0.14 per cent higher for the day and the Cac 40 closed up 0.64 per cent.

Luxury heavyweight LVMH added 2.2 per cent, its first gain in eight sessions, lifting the personal and household goods sector 1.1 per cent higher.

Covestro’s supervisory board is meeting on Friday to discuss whether to hold formal negotiations with suitor Abu Dhabi National Oil Company over the energy group’s takeover approach, a person familiar with the matter told Reuters. Shares of the German firm jumped 7.8 per cent.

New York

Wall Street’s main indexes rose on Friday as megacaps including Apple and Microsoft gained ahead of a fresh inflation reading next week that will provide further clues on the US interest rate trajectory.

US Treasury yields edged lower on Friday, helping boost major growth stocks, with Microsoft leading gains, up 1.9 per cent, and Meta Platforms advancing nearly 1 per cent.

Shares of Apple rose 1.2 per cent after a two-day sell-off following news that Beijing had ordered its central government employees in recent weeks to stop using iPhones at workplaces.

Wall Street analysts see a small hit to Apple’s revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4 per cent drop. The S&P 500 information technology sector rose 0.6 per cent while energy stocks rose 1.3 per cent to their highest level in over seven months, tracking an uptick in crude prices.

The S&P 500 and the Nasdaq have shed more than 1 per cent this week on concerns the Federal Reserve could keep interest rates higher for longer following stronger-than-expected services activity data and a fall in weekly jobless claims.

– Additional reporting: Reuters, PA