European shares closed at a record high on Wednesday as investors assessed a critical minerals agreement between the US and Ukraine. Euro zone government bond yields held near their lowest in over a week as traders eyed hurdles to an expected increase in European defence spending.
Dublin
Shares at Glanbia dropped over 23 per cent on a day when the Irish food group flagged an anticipated fall in earnings of up to 11 per cent due to the rising cost of a key ingredient in its protein powder products. It closed at €11.20.
In the banking sector, AIB and Bank of Ireland both gained, the former closing up 1.7 per cent at €6.56, and the latter by 1.26 per cent to finish at €11.23.
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FBD, the Republic’s only indigenous insurer which earlier this month predicted substantial costs arising from Storm Éowyn damage, saw its stock rise 3.4 per cent to €13.70.
Elsewhere, Kerry Group fell 1.35 per cent to €98.95. Mincon Plc, the Irish engineering tools group, fell 2.4 per cent to 40 cent. Ryanair climbed 2.12 per cent to €20.68.
London
Britain’s FTSE 100 touched one-week highs on Wednesday, led by gains in banks and mining stocks, while luxury retailer Burberry boosted the midcap index following a rating upgrade.
The blue-chip FTSE 100 rose 0.7 per cent to its highest since February 19th.
Banks were the biggest boost to the index, with mortgage lender Lloyds gaining 4.6 per cent after at least two brokerages raised their price target on the stock.
Metro Bank rose 4.3 per cent after the lender said it had signed an agreement to sell a portfolio of about £584 million (€706 million) of unsecured personal loans.
Glencore gained 2 per cent, Anglo American rose 3.5 per cent and Antofagasta was up 3.6 per cent.
The midcap FTSE 250 also gained 0.7 per cent. Burberry rose 7.8 per cent after brokerage Kepler Cheuvreux raised the luxury retailer’s rating to “buy” from “hold” and said it expects a slow recovery for the sector in the second half of the year.
Europe
European shares closed at a record high as corporate earnings took centre stage and investors assessed the impact of a critical US-Ukraine minerals agreement.
“Trump is creating a lot of uncertainty with tariffs and the politics he is doing. So people are just trying to position and be invested on the right side if a trade war should come,” said Jochen Stanzl, chief market analyst at CMC Markets.
The pan-European STOXX 600 index was up 1 per cent, boosted by banks for a second consecutive session.
Insurers followed with a 2.4 per cent gain after Germany’s Munich Re posted an annual operating profit that beat estimates.
Germany’s mid-cap stocks hit their highest level in over six months, boosted by optimism around pro-growth policies and higher defence spending from the next government.
The European aerospace and defence index was up 1.5 per cent.
Anheuser-Busch InBev (AB InBev) jumped 8.9% after it reported fourth-quarter operating profit above analysts' forecasts.
New York
The Nasdaq led Wall Street’s main indexes higher on Wednesday as chip stocks rebounded ahead of Nvidia’s results that are crucial to illuminating future demand for AI.
Eight of the S&P 500’s 11 sectors traded higher, with technology stocks rising 1.8 per cent.
AI chip leader Nvidia gained 4.4 per cent, while peers Broadcom and Advanced Micro Devices also rose, driving the broader semiconductor index 2.6 per cent higher.
Nvidia’s quarterly results and forecasts, expected after markets close, are likely to set the tone for artificial intelligence stocks that have dominated Wall Street.
Megacaps were mixed, with Meta Platforms up 3 per cent and Apple down 2 per cent. Tesla rose 1.2 per cent a day after the electric-vehicle maker’s market value fell below $1 trillion.
Since last week, a series of data releases, including Tuesday’s weak consumer sentiment print, has hinted that the world’s largest economy might be stalling despite inflation remaining high, keeping investors on the edge.
