Healthcare gloom wins out over bullish miners to start off second half of the year

European shares erased gains by the closing bell to finish lower on Monday. Pharma heavyweight AstraZeneca led falls among healthcare stocks that outweighed gains among miners buoyed by hopes of more policy stimulus from China.

The US market had a shorter than usual session, closing at 1pm ET in advance of the July 4th Independence Day holiday on Tuesday.

Dublin

The Irish market edged higher on Monday, closing the day marginally up at just under 8,731.

Bank of Ireland rose 4.2 per cent to €9.11 over the day, but AIB’s gain was less dramatic, rising almost 0.8 per cent to close the day at €3.88. Permanent TSB gained 1.35 per cent to close the day at €2.25.

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Heavyweight stocks showed some gains over the session. Smurfit Kappa saw a 1.8 per cent rise to €31.07, while CRH was up 0.75 per cent to close at €50.88.

But insulation group Kingspan saw its share price fall 1 per cent to €60.24 by the closing bell. Paddy Power-owner Flutter Entertainment was off almost 2 per cent, while ferries company Irish Continental was 1.5 per cent lower.

London

London’s FTSE 100 edged lower, with AstraZeneca leading falls in healthcare shares, while gains in miners on hopes of policy stimulus in China limited declines.

The blue-chip FTSE 100 lost 0.1 per cent, while the more domestically- focused FTSE 250 midcap index rose 0.5 per cent.

AstraZeneca tanked 8 per cent, recording its worst day since March 2020 as analysts said the benefits from its experimental datopotamab deruxtecan lung cancer drug may not be as pronounced as hoped. Further weighing on the healthcare sector, Smith+Nephew fell 5.8 per cent as Credit Suisse cut its price target on the medical products maker.

Anglo American advanced 4.3 per cent after the company’s unit De Beers Group and the Botswana government agreed on a new diamond sales deal.

Energy stocks added 2 per cent, with oil prices rallying after top exporters Saudi Arabia and Russia announced supply cuts.

The UK’s FTSE 100 posted a quarterly decline in the April to June period after reaching record highs earlier this year, with commodity prices volatile and still-high inflation prompting more monetary policy tightening.

Europe

The pan-European Stoxx 600 index dipped 0.2 per cent, reversing earlier gains of some 0.4 per cent, to kick off the first day of the second half of the year on the back foot.

Miners were the top sectoral gainers, up 2.2 per cent as most metal prices rose on hopes that China’s government will deliver a stronger economic stimulus package after data showed the country’s factory activity slowed in June.

Assicurazioni Generali hit its highest in over a year, up 3.4 per cent, after news that Italy’s insurance regulator had authorised investor Delfin to raise its stake to above 10 per cent in the company sparked anticipation that an investor battle for control will resume. Shares of Mediobanca, which counts Delfin as its single biggest shareholder, rose 1.6 per cent.

The moves helped Italy’s financials-heavy benchmark FTSE MIB climb 0.8 per cent, a bright spot among other bourses in the region.

New York

The S&P 500 ended little changed in a holiday-shortened session on Monday, kicking off the second half of the year on a subdued note, as gains in Tesla and bank shares were countered by weakness in the healthcare sector.

Tesla shares jumped as the electric vehicle maker said it delivered a record number of vehicles in the second quarter.

Shares of big banks, such as Wells Fargo and Goldman Sachs, were also ahead after raising dividends as they sailed through the Federal Reserve’s annual health check.

According to preliminary data, the S&P 500 gained 4.75 points, or 0.11 per cent, to end at 4,455.13 points, while the Nasdaq Composite gained 29.01 points, or 0.21 per cent, to 13,816.93. The Dow Jones Industrial Average rose 7.02 points, or 0.02 per cent, to 34,414.62. – additional reporting: Reuters