Business

Global stocks rise as investors await key US inflation data

Ryanair lagged behind its peers as it dropped 40 basis points following comments last week on the pricing of fares

US indexes were back near all-time highs hit in March, boosted by stronger-than-expected earnings reports. Photograph: Spencer Platt/Getty Images

Colin Gleeson
Mon May 13 2024 - 19:31

Global stock markets rose on Monday, with investors awaiting this week’s US inflation data, which is expected to be key for the outlook for interest rates.

Dublin

Euronext Dublin marginally underperformed relative to its European peers as it fell back 30 basis points.

Among the financial names, AIB had a strong opening in the morning with some robust flows, but it failed to hold on to those gains and finished the day down 70 basis points. Elsewhere, Bank of Ireland moved up 1.5 per cent.

Ryanair lagged behind its peers as it dropped 40 basis points, while Aer Lingus parent International Airlines Group climbed 3 per cent. Among the other airlines, Lufthansa and Air France rose 2 per cent and 4 per cent respectively.

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Ryanair chief executive Michael O’Leary last week said ticket fare prices this summer are likely to be lower than previously expected, despite previous warnings that rising costs would get passed on to airline customers.

“Ryanair has really struggled to regain the territory lost following last week’s comments on pricing, which created a lot of volatility,” one trader suggested.

London

The FTSE 100 stepped back from its recent record-breaking spell, finishing down 0.22 per cent following a broadly cautious trading session.

The index opened slightly higher but dipped as traders saw an opportunity to sell stocks and take profit after hitting a fresh all-time high at the end of last week.

Mining giant Anglo American saw shares edge lower after it rejected a second takeover tilt by rival BHP. Anglo American shares lifted after initial reports of the bid but dipped by 2.4 per cent to 2,707p after the likelihood of a takeover dwindled.

Shares in Diploma made gains after the technical products firm, which sells items such as gaskets, increased its annual guidance.

Diploma told investors it expects turnover to increase by around 16 per cent for the year, upgrading its previous forecast of 11 per cent, with profit margin also set to improve. Shares in the group rose by 4 per cent.

Dublin-based food group Greencore was a standout performer on the day as it climbed 3.5 per cent.

Elsewhere, the Mission Group saw shares lift by 5.73 per cent to 24p after the digital marketing firm received a takeover approach from rival firm Brave Bison. Meanwhile, Brave Bison’s stock was flat at 2.5p at the close of trading.

Europe

On the Continent, the picture was broadly similar across the other main indexes, with weaker commodity prices and below-par Chinese economic data from the weekend acting as drags.

The German Dax index was down 0.18 per cent at the close and the Cac 40 in France ended down 0.12 per cent.

MSCI’s gauge of stocks across the globe rose 0.2 per cent, and the Euro Stoxx 600 index was nearly flat.

New York

US stock indexes edged higher, nearing record highs after a recent run of gains, as investors awaited key inflation figures this week to gauge the likelihood of interest rate cuts in 2024.

The indexes were back near all-time highs hit in March, boosted by stronger-than-expected earnings reports, and signs of a cooling labour market that have fuelled bets of one or two rate cuts by the US Federal Reserve this year.

Shares of video game retailer GameStop jumped 65 per cent after “Roaring Kitty” aka Keith Gill, a former marketer at an insurance firm credited with sparking the 2021 meme stock rally, returned to X.com after a three-year hiatus.

Other highly shorted names including AMC jumped 32 per cent and Koss Corp soared 25 per cent.

Alphabet slipped 1.5 per cent as Microsoft-backed OpenAI looked set to announce its artificial intelligence-powered search product.

Apple added 1.6 per cent after a report said the company had closed in on an agreement with ChatGPT-maker OpenAI to use the start-up’s technology on the iPhone.

– Additional reporting: Agencies

Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter

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