Markets

Dublin market starts week outperforming European peers

Global stocks held broadly steady on Monday with US markets closed for a holiday

The Dax fell 0.5 per cent on the day in Frankfurt.

Ellen O’Regan
Mon Jan 15 2024 - 18:04

Global stocks held broadly steady on Monday, as US markets closed for a holiday, world leaders and executives gathered in Davos for the 54th World Economic Forum meeting this week, and investors await data on inflation and retail sales.

In Dublin, the ISEQ All Share Index moved higher, bucking a trend of overall losses in other European markets.

Dublin

The index gained 0.89 per cent on Monday, closing at 8,492.4.

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It was a mixed day of trading for Ireland’s banks, as AIB gained 1.1 per cent to close at €3.83, while Bank of Ireland fell by 0.22 per cent to €8.29 and Permanent TSB dropped by 2.96 per cent to €1.64.

There was little movement for Ireland’s two listed home builders, as Cairn Homes remained flat ahead of its latest trading update due on Tuesday at €1.34, and peer Glenveagh Properties fell by 0.34 per cent to €1.19.

Meanwhile, building materials company Kingspan fell by 1.23 per cent to close at €74.10, and packaging giant Smurfit Kappa fell by 0.26 per cent to €35.02.

Food company Kerry Group gained 1.03 per cent to €76.34, while peer Glanbia gained 1.06 per cent, to close at €15.32.

Paddy Power parent company Flutter Entertainment rose by 3.03 per cent, to close at €152.85, while budget airline Ryanair closed at €18.29 after gaining 0.77 per cent throughout the day.

Insurer FBD Holdings lost 0.43 per cent to close at €11.65.

London

The UK’s benchmark FTSE 100 Index reversed early gains on Monday, closing down 0.39 per cent at 7,594.91, while the domestically focused FTSE Mid-Cap 250 Index edged slightly higher, gaining 0.02 per cent to close at 19,200.84.

Investors are awaiting British consumer price inflation data and retail sales figures for December, both of which are due later this week, for more clarity on potential interest rate cuts.

Among individual stocks, luxury retailer Burberry extended losses and fell by 5.72 per cent, after it warned of a worsening slowdown in demand for luxury goods last week.

Shares of PageGroup fell 1.53 per cent after the global recruiter trimmed its annual profit forecast.

Crest Nicholson reversed greater losses earlier in the day on Monday, but still closed down 0.83 per cent after the home builder cut its annual profit forecast.

HSBC lost 2.29 per cent after Exane BNP Paribas cut the British lender to “underperform” as the brokerage expects “underappreciated” margin headwinds for the firm.

Europe

European shares edged lower on Monday as government bond yields rose on warnings of premature rate cuts from the European Central Bank.

The pan-European STOXX 600 Index fell by 0.53 per cent on Monday, to close at 474.24. Meanwhile, the German DAX Index lost 0.49 per cent to close at 16,622.22, and the French CAC 40 Index was down 0.72 per cent to close at 7,411.68.

Euro zone government bond yields rose during the session as the ECB’s chief economist Philip Lane said in an interview on Saturday that cutting rates too fast could fuel a new wave of inflation.

Shares of Commerzbank moved up 0.79 per cent after talks of a merger with Deutsche Bank resurfaced, according to a source familiar with the matter.

Dassault Aviation fell 6.43 per cent after the French aircraft manufacturer reported 2023 aircraft deliveries below its target and Deutsche Bank downgraded the Rafale fighter jet maker to “hold” from “buy”.

Among other big movers, Atos slid 15.13 per cent after the French technology company said its free cash flow would be slightly below its target in the second half of the year. The firm also named Paul Saleh as its new chief executive officer.

SoftwareOne dropped 8.44 per cent after the Swiss software management company rejected an offer from Bain Capital and said it wants to remain independent.

New York

US stock markets were closed on Monday, to observe federal holiday Martin Luther King jnr Day.

Despite Monday’s sleepy start, investors are set for a busy week with data on Chinese fourth-quarter growth, UK inflation, and US retail sales all due on Wednesday.

They will also be listening closely to central bank officials, especially the Federal Reserve’s Christopher Waller due to speak on Tuesday, whose dovish turn in late November helped to send markets soaring.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

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