Tesla shares plunge and European markets see no relief from steady interest rates

Wall Street indices gained on Thursday, despite Elon Musk’s Tesla dropping to an eight-month low on a warning that growth for the EV maker will be “notably lower” this year.

Euronext Dublin outperformed its European peers, but overall the market was flat as the European Central Bank’s latest policy announcement left interest rates fixed at record highs.

Dublin

Euronext Dublin gained 0.67 per cent on Thursday, to close at 9,033.04.

Among the banks, AIB fell by 0.45 per cent to close at €4, while Bank of Ireland was also down on the day, losing 0.44 per cent to close at €8.20. Meanwhile, Permanent TSB rose by 1.48 per cent to €1.71.

Bonds are back: but should you invest?

---

CRH puts its hands up over shortcomings on investor dividends

---

Will inheritance cause a problem with my weekly disability payment?

---

High rollers face pension squeeze

---

Cairn Homes gained 0.55 per cent to €1.46, as the home builder announced a reshuffle of its board and co-founder Alan McIntosh stepped down. Peer Glenveagh Properties also gained, rising by 2.6 per cent to €1.26.

Building materials company Kingspan rose by 1.22 per cent to €74.66, while packaging giant Smurfit Kappa was one of the biggest upward movers on the day, rising 4.62 per cent to €36.25.

Paddy Power parent company Flutter Entertainment lost 0.44 per cent, to close at €181.95, while budget airline Ryanair gained 0.54 per cent to close at €18.74.

Food company Kerry Group rose by 0.88 per cent to €80.40, while peer Glanbia rose slightly, by 0.06 per cent, to €15.54.

London

The export-heavy FTSE 100 Index was almost flat on Thursday, rising by just 0.03 per cent to 7,529.73, while the more domestically-focused FTSE Mid-Cap 250 Index gained 0.27 per cent to 19,223.10.

As the ECB made its latest monetary policy announcement on Thursday, UK investors await a policy decision from the Bank of England next week.

Among individual stocks, IG Group dropped 7.61 per cent after the online trading platform reported a drop in first-half earnings due to softer market conditions.

Shares of St James’s Place fell 4.41 per cent after net inflows at the FTSE 100 wealth manager slowed in 2023.

Wizz Air fell 4.11 per cent after the budget airline reported a bigger third-quarter operating loss, grappling with the effects of engine inspections that have grounded parts of its fleet and the suspension of flights due to the Middle East conflict.

On the flip side, Elementis jumped 12.74 per cent after Reuters reported that KPS Capital Partners recently explored a bid for the UK speciality chemicals maker.

Europe

Trading in European markets was subdued on Thursday, as the ECB maintained interest rates at a record high of 4 per cent.

The pan-European Stoxx 600 Index gained 0.30 per cent to 478.52, while the German Dax index rose by 0.10 per cent to 16,906.92 and the French Cac 40 index gained 0.11 per cent to close at 7,464.20.

Making the latest policy announcement, ECB president Christine Lagarde said it was “premature to discuss rate cuts” for the euro-zone economy, and that risks to economic growth are “tilted to the downside”.

Better-than-expected earnings from Nokia pushed shares in the Finnish telecoms equipment maker to the top of the Stoxx 600, as it gained 10.86 per cent.

Spain’s Bankinter fell 6.04 per cent after its fourth-quarter net profit missed market expectations. Meanwhile, a rating downgrade from Deutsche Bank on Italy’s UniCredit saw the stock lose 1.76 per cent.

Givaudan added 7.6 per cent after the Swiss fragrance and flavour maker reported 2023 core earnings in line with expectations and annual organic sales above estimates.

New York

Wall Street’s three main indices made marginal gains on Thursday, despite EV maker Tesla plunging more than 10 per cent as it warned of a sharp drop in growth.

GDP figures published on Thursday showed that the US economy grew more quickly than expected in 2023, with GDP increasing at a 3.3 per cent annualised rate and full-year growth at 2.5 per cent.

Tesla shares dropped more than 10 per cent to an eight-month low, and was on track to lose about $50 billion (€46.15 billion) in value after warning of a sharp slowdown in sales growth this year.

On the upside, IBM shares jumped more than 10 per cent to a more than decade high after the company reported a better-than-expected revenue outlook backed by strong demand for its artificial intelligence services.

Humana sank as it became the latest health insurer to forecast disappointing annual profit, while Boeing also fell after the US Federal Aviation Administration barred the troubled plane maker from expanding production of its 737 Max narrowbody aircraft. – Additional reporting: Reuters

• Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
• Find The Irish Times on WhatsApp and stay up to date
• Our Inside Business podcast is published weekly – Find the latest episode here