Global stocks traded cautiously on Monday as the market’s focus turned to US inflation data for more clues on whether global interest rates really have peaked.
Dublin
Euronext Dublin finished up 0.7 per cent on what was a subdued day for the index with trading volumes down 18 per cent versus the one month average.
The most notable mover of the day was Paddy Power Betfair parent Flutter Entertainment which climbed 2.25 per cent to rebound from the lows of last week.
Investors “sold off quite aggressively” after the group said it grew revenue 8 per cent to €2 billion in the three months to the end of September, a trader said.
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Among the financial names, AIB and Bank of Ireland were both up just over 1 per cent, with stock in the former trading “very well” since the Government sold another portion of its stake in the bank last week. Meanwhile, Permanent TSB closed down 3 per cent.
Elsewhere, Dalata – the biggest hotel operator in the State – finished up 2 per cent. Staying with the travel and leisure sector, budget airline Ryanair opened down about 1.5 per cent but recovered to finish up 60 basis points.
“Ryanair management were on the road last week after results last Monday,” a trader noted. “There was a huge amount of interest in Ryanair over the past few days but the fizz has come out of that now.”
London
The FTSE 100 climbed 0.89 per cent to bounce back from Friday’s London sell-off with a bright start to the week for the oil and banking firms.
In company news, British Land finished higher after the property company said rental growth would be at the top of previous guidance, supporting the firm’s profit outlook.
It came despite the Meadowhall investor recording a pretax loss of £49 million (€56 million) in the six months to the end of September as it was hit by higher borrowing costs. Nevertheless, investors were pleased with the latest update, with shares increasing by 5.8p to 319.5p.
Royal Mail parent firm International Distributions Services saw shares slip by 2.6p to 237.4p after the postal service operation was fined £5.6 million by regulator Ofcom for a “significant” failure to meet its delivery targets in the past financial year.
Europe
On the continent, the other major markets closed up marginally amid hopes that interest rates could come down next year.
The Dax index in Germany was 0.73 per cent higher for the day at the close while the Cac 40 in France closed up 0.6 per cent.
Euro zone bond yields ticked higher, echoing a move in US Treasuries and giving up small declines from early trading.
Italian bonds performed a fraction better than peers after Fitch affirmed Italy’s rating late on Friday.
New York
Wall Street’s main indexes slipped as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated.
Megacap growth stocks were a big drag, as the benchmark US 10-year Treasury yield rose. Shares of Microsoft, Amazon.com and Apple fell between 0.5 per cent and 1.5 per cent in early trade.
Eight of the 11 major S&P 500 sectors were in the red, with rate-sensitive real estate stocks down 1.2 per cent and leading declines.
At 9.41am eastern time, the Dow Jones Industrial Average was down 0.06 per cent; the S&P 500 was down 0.43 per cent; and the Nasdaq Composite was down 0.7 per cent.
Medtech companies such as Dexcom, Abbott and Insulet rose between 2 per cent and 5 per cent as analysts said data for cardiovascular benefits for Novo Nordisk’s weight-loss drug Wegovy is better than feared for the companies. – Additional reporting: Agencies
