Equity markets calm after Truss resignation

European shares rose on Thursday after Liz Truss said she was resigning as the British prime minister, brought down by her economic programme that caused havoc on markets.

In the US Wall Street’s main indexes jumped as upbeat results and forecasts from IBM, AT&T and Dow brought back cheer to the markets that were briefly taken aback by the political turmoil in Britain.

Dublin

The Iseq index was ahead by 0.8 per cent, with a mixed bag performance from its heaviest weighted stocks following the political news in London.

Paddy Power-owner Flutter Entertainment, whose consumer-oriented services perform better in a stable UK economy, rose by 1.9 per cent to €123.30.

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Hotel group Dalata, which is targeting major growth in the UK, rose by more than 1.1 per cent to €3.07 by the end of the session.

The index’s major US-focused multinationals, building materials groups CRH and Kingspan, both rose on greater stability in global markets. CRH was up 1 per cent to €34.73, while Kingspan was ahead by 1.7 per cent to €50.70.

London

The blue-chip FTSE 100 rose 0.3 per cent, but gains were capped as a jump in the pound hurt dollar earners such as AstraZeneca and Diageo. The FTSE 250 index, more exposed to the domestic economy, climbed 0.8 per cent.

Homebuilders, retailers, and real estate, which suffered the brunt of selloff recently due to macroeconomic concerns sparked by the UK’s fiscal makeover, gained between 0.9 per cent and 2.3 per cent.

Jupiter jumped 10.1 per cent after the fund manager reported a drop in net outflows for the three months through September.

Online wine retailer Naked Wines soared after the company said it was overhauling its board and spending plans while admitting to shareholders that it had made mistakes in pursuit of ambitious growth. Shares were up by 29 per cent at the end of the day.

Homewares retailer Dunelm cautioned investors of a “challenging winter” for consumers, but said that it was well positioned to offer shoppers good value. Nevertheless, its sales were down 8.3 per cent for the 13 weeks to October 1st compared to the same period last year. Its shares slipped by 1.8 per cent.

Bus and coach group National Express said that its sales had been boosted by train strikes and Queen Elizabeth’s funeral, during which its services became key. It reported a rise in sales and finished the session up 2.1 per cent.

Europe

The region-wide Stoxx 600 closed 0.3 per cent up after flirting between gains and losses right since Ms Truss resigned.

Finnish telecom equipment maker Nokia and rival Ericsson reported weaker-than-expected earnings, bruised by ongoing patent battles which pressured margins and offset strong demand for 5G equipment. Shares of the companies slumped 7.6 per cent and 14.8 per cent respectively.

More than half of the sectors advanced, with tech rising 1.94 per cent. Telecom was the biggest loser, down 2.5 per cent.

In a bright spot Finnish banking group Nordea beat profit estimates, while Hermes added 1.6 per cent after the Birkin bag-maker saw a sharp pickup in sales growth with no signs of a slowdown.

Among other stocks Swedish Match gained 1.9 per cent after Philip Morris International raised its buyout offer for the nicotine products maker.

New York

IBM Corp shares gained 4.3 per cent after the IT services company beat quarterly earnings estimates and said it expects to exceed full-year revenue growth targets.

Fellow blue-chip stock Verizon Communications rose 1.6 per cent after peer AT&T jumped 8.2 per cent upon raising its annual profit forecast.

Dow rose 3.3 per cent after the chemicals giant beat third-quarter profit estimates.

Tesla, however, dropped 4.9 per cent as the electric-vehicle maker flagged persistent logistics challenges, with fourth-quarter deliveries growing by less than the aimed 50 per cent. (Additional reporting: Reuters/PA)