Global stocks were little changed on Monday as investors reassessed the path of interest rates after Friday’s stronger-than-expected US payrolls report fuelled expectations the Federal Reserve will dial back its aggressiveness in cutting interest rates.
Dublin
Euronext Dublin finished up 0.25 per cent on what was a relatively muted day for the market with light trading volumes and news-flow.
A number of the financial names recovered some ground following some weakness towards the end of last week with AIB and Bank of Ireland up 3 per cent and 1 per cent respectively at close of business.
Elsewhere, budget airline Ryanair was down 1.5 per cent as it gave back some ground following a fairly strong performance last week.
Among some of the biggest names of the index, food giant Kerry Group finished the day flat, while insulation specialist Kingspan climbed 0.4 per cent. Finally, agricultural group Origin Enterprises finished the day up 3.5 per cent.
London
Britain’s benchmark FTSE 100 index rose 0.3 per cent, boosted by gains in energy shares and a softer labour market report, though losses in precious metal miners kept gains in check. The mid-cap FTSE 250 edged 0.2 per cent lower.
Oil and gas shares led sectoral gains, with a 2 per cent advance as oil prices extended a rally driven by fears of a wider Middle East conflict and potential disruption to exports from the big oil-producing region.
Shell was up 2.3 per cent despite reporting a nearly 30 per cent drop in its refining profit margins in the third quarter as global demand sagged, while oil product trading earnings also weakened.
BP abandoned a target to cut oil and gas output by 2030 as chief executive Murray Auchincloss scales back the firm’s energy transition strategy to regain investor confidence. The index heavyweight closed the session with a 1.3 per cent rise.
Endeavour Mining was the top loser on FTSE 100, falling 5.6 per cent, on fears that West African country Burkina Faso may withdraw its mining permit.
Europe
It was a mixed session for European stock markets, with Germany’s Dax down 0.09 per cent, and France’s Cac 40 closing 0.46 per cent higher.
MSCI’s gauge of stocks across the globe flat, while the Stoxx 600 index rose 0.14 per cent, erasing earlier declines.
Euro zone government bond yields rose, adding to a sharp jump at the end of last week.
The European Central Bank is widely expected to lower interest rates when it meets next week, with markets fully pricing in a 25 basis point move.
New York
US stock indexes fell, pressured by rising Treasury yields as markets recalibrated expectations for the Federal Reserve rate cuts.
The S&P 500 was down 0.35 per cent and Dow Jones 0.5 per cent lower by the time European markets closed.
The yield spike cast a shadow over rate-sensitive megacap growth stocks, dragging down Tesla 2.3 per cent and Google-parent Alphabet 0.7 per cent. Amazon fell nearly 2.5 per cent after a Wells Fargo downgrade.
Shares of Pfizer rose 3.1 per cent after a report that activist investor Starboard Value has taken a roughly $1 billion stake in the drug giant.
Meanwhile, Air Products and Chemicals was one of the top S&P 500 gainers, up 7.8 per cent on a report that activist hedge fund Mantle Ridge has built a position in the company.
US property and casualty insurance stocks tanked after Hurricane Milton on its path toward Florida’s western coast, marking yet another costly disaster for the industry to cover this year.
Heritage Insurance, which has a big footprint in the state, was down 27 per cent. Universal Insurance, and HCI Group, fell 14 per cent and 16 per cent, respectively.
Sector bellwether Travelers Companies was down 3 per cent, while Allstate and Assurant declined 3.3 per cent and 4 per cent respectively. – Additional reporting: Agencies
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