European markets climbed on Monday as investors prepared for likely US and UK interest rate hikes later this week.
DUBLIN
The October bank holiday marked a quieter-than-usual start to the week. Ryanair Holdings was one of the main movers as reports indicated further consolidation loomed in European air travel.
The Irish giant added 4.68 per cent to close at €12.295, helping to lift the overall index. Ryanair is due to report first-half results next week, which dealers said could have helped spark investors’ interest.
Food group Glanbia, which is due to report results on Thursday, was up 1.21 per cent at €11.69. “There were a few buyers knocking around for the stock,” said one dealer.
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Paddy Power and Betfair owner Flutter Entertainment rose 1.63 per cent to €133.90 on Monday.
The banks had a mixed day. AIB dipped 0.95 per cent to €2.93. Bank of Ireland inched 0.94 per cent up to €7.296.
LONDON
The UK’s FTSE 100 inched higher on Monday, set to rise for the month as some investor nerves were soothed over reports that British prime minister Rishi Sunak could extend a freeze on British foreign aid, helping offset a fall in oil stocks.
Energy stocks fell 0.4 per cent, as oil prices declined on weaker-than-expected China factory activity data.
The FTSE 100 tracked gains of 2.2 per cent in October, while midcaps eyed a monthly rise of 4.4 per cent.
Mr Sunak might extend the foreign aid spending cut by another two years to 2026-2027 as the government draws up spending cuts and cancels tax cuts to ease the squeeze on household budgets caused by higher costs of living, according to a Telegraph report.
Investors will now look towards the Bank of England and the US Federal Reserve for any signs of easing their aggressive monetary policy tightening cycles, with each expected to increase rates by 75 basis points during the week.
The banking sector gained 1.2 per cent after a Sunday Times report said that more windfall taxes in the UK was unlikely.
Easyjet rose 5.9 per cent to 348.4 pence sterling after a London Times report stated that Aer Lingus and British Airways owner International Consolidated Airlines Group (IAG) is to renew its EU consolidation plans.
IAG itself climbed 5.45 per cent to 121.56p on a day when airlines were popular with investors.
Bord Gáis Energy owner Centrica topped the UK FTSE after brokerage Jefferies upgraded the stock to “buy” and raised its price target as well, citing strong fundamentals. The energy company’s shares rose 4.73 per cent to close at 76.62p.
Centrica’s boost helped the blue-chip FTSE 100 close 46.86 points higher, or 0.66 per cent, at 7,094.53.
EUROPE
Germany’s Dax made strong gains during the day but stocks slipped to edge just 0.08 per cent higher when markets closed. The French Cac was down 0.1 per cent.
Europe’s Stoxx 600, which tracks leading shares across 18 markets, closed up 0.4 per cent.
German airline Lufthansa gained 1.82 per cent to €6.94. Air France KLM slipped 3 per cent to €1.33.
NEW YORK
US stocks fell on Monday, potentially stalling a two-week rally in the S&P 500 and the Nasdaq indexes, as investors turned cautious ahead of the Federal Reserve’s rate-setting meeting this week.
A policy decision from the Fed is due on Wednesday, with investors expecting a fourth straight 75-basis point interest rate hike to curb decades-high inflation.
Apple dropped 1.4 per cent. A Reuters report said production of its iPhones could slump by as much as 30 per cent next month due to tightening coronavirus curbs in China.
Shares in Amazon and Google-owner Alphabet were also down 1.4 per cent and 1.5 per cent, respectively.
Global Payments fell 6.7 per cent after the company forecasted full-year revenue below estimates. —Additional reporting: Reuters
