Business

Markets quiet amid UK elections and US Independence Day break

European stocks rise as elections take centre stage and investors grow optimistic about Federal Reserve interest rate cuts

Wall Street closed for Independence Day on Thursday. Photograph: Shutterstock

Barry O'Halloran
Thu Jul 4 2024 - 18:21

Markets were subdued on Thursday as the US celebrated Independence Day, UK voters went to the polls and France geared up for a second round in its elections.

DUBLIN

Lenders were popular with investors as financial stocks generally rose in Europe on Thursday. AIB added 2.5 per cent to €5.09 shortly before the market closed, while Bank of Ireland was up 3.4 per cent at €9.944.

Housebuilder Glenveagh sank 3.61 per cent to €1.28 after saying that revenues in the six months to June fell to €150 million from €172 million during the same period in 2023. The company noted it was still on track to meet earnings targets.

Ryanair shed 1.3 per cent to €16.385. Traders said the carrier had enjoyed a good day on Wednesday, but was handing back some of those gains.

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Food group Glanbia added 1.15 per cent to €18.53. In the same industry Kerry rose 0.26 per cent to €75.90.

LONDON

London’s blue chip FTSE 100 swung firmly higher on Thursday as voters headed to the polls.

Smith & Nephew was the index’s top performer as shares were lifted by activist investor Cevian revealing it has taken a stake in the group. Swedish group Cevian is now the medical equipment firm’s second biggest shareholder after snapping up a 5 per cent holding. Shares in Smith & Nephew had dipped since the start of the year, but rebounded by 6.87 per cent to 1,054 pence sterling on Thursday.

Peel Hunt made strong gains after it revealed its revenues are ahead of where they were at the same time last year. The London-based investment bank said it had seen “some improvement in the macroeconomic backdrop” in recent months. As a result shares in the business rose by 3.88 per cent to 134p at the close.

Barclays finished up 2.84 per cent at 224.35p after it agreed to sell its German consumer finance arm to an Austrian bank as part of the high street lender’s latest efforts to simplify the business.

EUROPE

European stocks rose as elections in France, Britain and Northern Ireland held centre stage and investors grew more optimistic about Federal Reserve interest rate cuts following US economic data that supported the case for easing.

Sweden’s Ericsson slipped 1.2 per cent to 65.22 kroner after the telecoms equipment maker recorded another impairment charge of $1.09 billion (€1bn) in the second quarter of 2024.

Redcare Pharmacy surged 12.8 per cent to €129.50 after the German pharmaceutical retailer posted a 33 per cent jump in second-quarter preliminary sales.

France’s Pluxee tumbled 10 per cent early in the day before closing 9.3 per cent off at €25.58 as the voucher and benefits company reported weaker-than-expected third-quarter sales in Europe on Wednesday.

French stocks advanced for a second day amid intensified efforts by opponents of France’s National Rally (RN) to prevent the far-right party from gaining power.

German industrial orders fell unexpectedly in May, declining by 1.6 per cent on the previous month on a seasonally and calendar adjusted basis.

Europe’s regional Stoxx 600 index climbed 0.6 per cent, with banks the leading gainers. US equity futures contracts were little changed, with cash markets shut for Independence Day, after the S&P 500 and Nasdaq 100 set fresh record highs on Wednesday.

Weak US economic data has narrowed the odds on a September interest rate cut in the world’s biggest economy. – Additional reporting: Press Association, Reuters

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas

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