Business

European markets lacklustre as investors await key US inflation data

Iseq All Share dips 1.88% on a weak day for the banks

Wall Street’s main indices lifted slightly on Wednesday, as investors awaited inflation reports and earnings from major lenders later in the week. Photograph: Michael M Santiago/Getty Images

Ellen O’Regan
Wed Jan 10 2024 - 18:18

European markets either declined or were stagnant during a weak day of trading on Wednesday, as investors looked to inflation reports due in the US later this week to get a sense of the direction of monetary policy.

Dublin

The Iseq All Share Index fell by 1.88 per cent on Wednesday, closing at 8,470.87.

It was a weak day for the banks, as AIB fell by 2.81 per cent to €3.95, while Bank of Ireland was down 2.26 per cent to €8.55 and Permanent TSB dropped 0.29 per cent to €1.70.

The day was mixed for the two listed home builders, with Cairn Homes rising by 1.21 per cent to close at €1.34, and peer Glenveagh Properties losing 0.16 per cent to close at €1.23.

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In a trading update on Wednesday, Glenveagh said that group revenue fell by 6 per cent to €608 million in 2023, but operating profits rose by €1 million to €71 million, while it plans to deliver 2,700 new homes this year.

Meanwhile, building materials company Kingspan fell by 1.23 per cent to €73.90, and packaging company Smurfit Kappa lost 0.73 per cent to close at €35.37.

Paddy Power parent company and Iseq heavyweight Flutter Entertainment lost 3.94 per cent on the day, to close at €148.65. Meanwhile, budget airline Ryanair was down 0.69 per cent, closing at €18.08.

Food company Kerry Group lost 1.72 per cent to close at €76.70, while peer Glanbia held steady, and closed at €14.94.

London

The export-heavy FTSE 100 Index fell by 0.42 per cent to close at 7,651.76, while the more domestically focused FTSE Mid-Cap 250 Index was down 0.07 per cent to close at 19,280.08.

Among individual stocks, shares of Sainsbury’s dropped 6.34 per cent to the bottom of the FTSE 100 Index. Britain’s second-biggest supermarket group failed to upgrade its full-year outlook despite a 7.4 per cent increase in its underlying sales in the key Christmas quarter. Shares of Tesco were also down on the day, by 1.43 per cent.

Bakery chain Greggs saw a 5.17 per cent jump, after reporting a better-than-expected rise in like-for-like sales in the fourth quarter, driven by demand for seasonal products.

Persimmon rose 6.22 per cent even as the British housebuilder acknowledged in a trading update that housing market conditions would remain challenging this year amid broader economic woes.

Europe

European stocks were flat on Wednesday, as the pan-European Stoxx 600 Index fell by 0.16 per cent, to close at 476.48.

The French CAC 40 Index lost just 0.01 per cent to close at 7,426.08 and the German DAX Index gained 0.01 per cent to close at 16,689.81.

BE Semiconductor Industries fell by 2.37 per cent after the Dutch semiconductor manufacturer was downgraded at Deutsche Bank.

Italian spirits group Campari fell by 6.53 per cent to the bottom of the Stoxx 600 Index, as the company issued new shares at a discounted price to help fund the recent acquisition of French cognac house Courvoisier.

Spanish pharma company Grifols gained 11.99 per cent on Wednesday, reducing losses earlier in the day. The company said it would launch legal action against Gotham City Research after the short-seller fund published a critical report that wiped $2.5 billion (€2.28 billion) off the Barcelona-based firm’s market value on Tuesday.

New York

Wall Street’s main indices lifted slightly on Wednesday, as investors awaited inflation reports and earnings from major lenders later in the week.

All eyes are on the December consumer and producer inflation reports, due on Thursday and Friday, respectively, which could help determine the monetary policy trajectory for the Federal Reserve.

Nvidia gained after TSMC, the world’s largest contract chipmaker, beat fourth-quarter revenue expectations.

Crypto stocks including Coinbase and Riot Platforms dipped on the day. Prices of the world’s most valued cryptocurrency, Bitcoin, fell after the US securities regulator said a fake social media message was posted on its account regarding the eagerly awaited approval of exchange-traded funds.

Boeing recovered slightly from a 9.3 per cent tumble in the last two sessions. Chief executive Dave Calhoun acknowledged errors by the US plane maker as more than 170 jets remained grounded for a fourth day.

DocGo dropped after Fuzzy Panda Research revealed its short position on the health services company’s stock. – Additional reporting: Reuters

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

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