European stocks gained on Wednesday as investors assessed prospects for an interest-rate cut by the European Central Bank next week and more China stimulus. Wall Street traders gearing up for key inflation data sent stocks within a striking distance of their record highs. It comes as the price of brent crude oil dropped to $76.74 a barrel, down from a high of over $81 a barrel within the last week.
Dublin
The Iseq was up 0.8 per cent on Wednesday, performing in line with peers. Ryanair rose 2.2 per cent to 16.90 a share, outperforming its European peers. In the food groups, Kerry Group rose 2.3 per cent to €92.95 and Glanbia rose 0.53 per cent to €15.04. Dalata Hotels rose 1.27 per cent to €4 a share, while Cairn Homes rose 1.22 per cent finishing at €2.08.
In banking AIB rose 1 per cent to €5.07; Bank of Ireland rose marginally by 0.1 per cent to €9.58; and Permanent TSB fell by 1.79 per cent to €1.65.
London
British equities mostly rebounded on Wednesday, with the biggest boost from the real estate sector, while home builders extended declines from the previous session after brokerages cut Vistry’s target price.
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The blue-chip FTSE 100 index climbed 0.7 per cent to clock its best day in nearly three weeks, while the mid-cap FTSE 250 was up 0.9 per cent. The benchmark index notched its biggest single-day percentage drop in two months on Tuesday.
All FTSE 350 sectors traded in the green, except household goods and home construction which fell 0.4 per cent after at least six brokerages including Barclays and Citigroup cut their target price on Vistry Group.
The home builder’s shares slumped 24 per cent in the previous session after a profit warning.
The gains were driven by the real estate sector which rose 0.9 per cent while construction and materials sector jumped 2.3 per cent.
Among individual stocks, Mondi advanced 4 per cent after the paper and packaging firm agreed to buy Schumacher Packaging’s German, Benelux and UK packaging assets for €634 million ($696 million), including debt, to expand in western Europe.
CMC Markets ended with a 0.5 per cent decline, having advanced earlier in the day after the trading platform forecast a 45 per cent rise in first-half net operating income, buoyed by cost cuts and sustained levels of trading activity.
Europe
European stocks settled higher on Wednesday, bouncing from losses in the previous session as investors focused on upcoming interest rate cuts and a key US inflation report later this week.
The continentwide Stoxx 600 index was up 0.6 per cent, with the automobiles and parts sector, which has lagged for most of the year, among top gainers with a 1.1 per cent jump.
Continental gained 7.2 per cent after the German automotive supplier forecast profitability in its automotive business to improve in the third quarter.
New York
The main stock indexes turned higher in a choppy trading session on Wednesday as investors awaited the minutes of the Federal Reserve’s latest meeting, while Alphabet shares lost ground after the US said it was considering breaking up Google.
Shares of Alphabet fell 1.8 per cent, limiting broader gains, after the US department of justice said it may ask a judge to force Google to divest parts of its business, including the Chrome browser and Android operating system, to curtail its search monopoly.
The Dow Jones Industrial Average rose 0.92 per cent, the S&P 500 gained 0.60 per cent, and the Nasdaq Composite gained 0.45 per cent.
The S&P 500 touched a fresh record high, with shares of Norwegian Cruise Line topping the benchmark index with a 10.2 per cent gain after Citi upgraded its rating to “buy”. Peer Carnival jumped 7.8 per cent.
Trading has been choppy through the week, with investors adjusting their rate-cut expectations, seeking new catalysts for a clearer market direction. Their attention will now turn to crucial inflation data on Thursday and the upcoming third-quarter corporate earnings season. – Additional reporting: Bloomberg
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