European shares ended lower again on Thursday as a continued sell-off of chip stocks kept a lid on gains brought on by some positive corporate updates, while investors assessed the European Central Bank’s latest verdict to keep lending rates steady.
The ECB kept interest rates unchanged as expected, but said September’s meeting was “wide open” as it downgraded its view of the euro zone’s economic prospects and predicted that inflation would keep on falling.
Dublin
The Iseq managed to edge up 0.1 per cent in a sluggish session for several key stocks, with Ryanair the most significant faller. The airline closed at €16.69, down 1.7 per cent on the day.
There were gains, however, for food group Kerry, which rose 1.4 per cent to €80.10, and insulation-maker Kingspan, which added 1.3 per cent to finish at €86.15. Bank of Ireland climbed 0.4 per cent to €10.22, but AIB was 0.4 per cent weaker, closing at €5.28.
London
The blue-chip FTSE 100 rose 0.2 per cent after a slew of positive corporate updates, while data showed UK wage growth slowed but not enough to seal expectations of an interest rate cut early next month. The FTSE 250 midcap index rose 0.7 per cent to close at a fresh two-year high.
Frasers Group jumped 9 per cent after the sportswear and apparel retailer reported a 13.1 per cent rise in annual profit and forecast further strong growth in its new financial year.
Schroders climbed almost 5 per cent after Morgan Stanley upgraded the investment manager to “overweight” from “equal weight”.
Dunelm Group jumped 8.5 per cent after the homewares retailer forecast its annual profit would be slightly higher than market consensus.
Europe
The continent-wide Stoxx 600 closed 0.2 per cent lower, extending losses to a fourth straight session. Yields on government bonds across the Continent eased, while the euro fell 0.2 per cent against the dollar.
The tech index extended declines to a fourth session, falling 1.8 per cent with chip stocks like ASML, ASM International and BE Semiconductor all dropping.
Chip stocks around the world came under pressure on Wednesday following a report that the US has told its allies it is considering using the most severe trade restrictions available in its chip crackdown on China.
Automotive stocks jumped 1.2 per cent with Volvo Cars accelerating 11 per cent after the Swedish company’s earnings beat expectations. Truck-maker AB Volvo, a separate company, jumped 5.9 per cent after posting a bigger than expected rise in second-quarter operating profit.
EssilorLuxottica gained 1.5 per cent after a news report said Facebook-parent Meta is exploring a stake in the Ray-Ban maker.
Publicis added 3 per cent as the French advertising group upgraded its organic growth guidance after beating expectations for the second quarter. Finnish telecom equipment maker Nokia shed 5 per cent after reporting a 32 per cent decline in quarterly profit.
US
The Nasdaq and S&P 500 rose in early trading, boosted by a recovery in mega-caps, before later turning negative.
US-listed shares of TSMC dipped. The world’s largest contract chipmaker’s US shares initially jumped 2.1 per cent after it raised its full-year revenue forecast on surging demand for AI chips. Apple and Nvidia, both TSMC customers, also rose in the early hours before falling into the red.
In corporate results Domino’s Pizza slumped 12.7 per cent after falling short of estimates for quarterly same-store sales.
Warner Bros Discovery jumped 3.7 per cent after a report that the CNN and HBO owner had discussed a plan to split its digital streaming and studio businesses from its legacy TV networks. Netflix rose 0.7 per cent ahead of its results, due after markets close.
Additional reporting: Reuters
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