Global markets boosted by cooling inflation data but Euronext Dublin sees loss

Data from the UK and the US in recent days indicates that inflation may be cooling as investor eyes turn to euro zone inflation data due out later this week. Euronext Dublin was out of step with European peers on Wednesday as it recorded an overall loss.

Dublin

Euronext Dublin lost 0.1 per cent on Wednesday as the Iseq All Share closed at 8,255.97.

The banks all saw losses on the day, with AIB falling by 0.61 per cent to €4.22, and Permanent TSB down 1.1 per cent to €1.79.

Bank of Ireland saw the largest loss, down 3.26 per cent to close at €8.62. On Tuesday Bank of Ireland struck a deal to pay an average 4 per cent pay increase to most of its 10,500 staff following negotiations with the Financial Services Union.

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Paddy Power parent company Flutter Entertainment lost 1.4 per cent to close at €144.85, while nutrition company Glanbia fell by 2.23 per cent to €15.35.

Home-builder Glenveagh Properties lost 0.77 per cent to close at €1.04, while peer Cairn Homes gained 0.82 per cent and closed at €1.23.

Also moving upwards on the day, insulation and building materials manufacturer Kingspan rose by 1.06 per cent to €68.78, and packaging giant Smurfit Kappa gained 1.86 per cent to close at €32.80.

Ryanair gained 1.99 per cent to close at €17.42, and food company Kerry Group closed at €73.92, after gaining 0.3 per cent.

London

The UK’s benchmark indexes rose on Wednesday as cooler than expected inflation data lifted investor sentiment.

The export-heavy FTSE 100 Index rose by 0.62 per cent to 7,486.91, while the more domestically-focused FTSE Mid-Cap 250 Index rose by 0.76 per cent to 18,676.48. The UK consumer price index rose by 4.6 per cent in the 12 months to October, slowing from September’s 6.7 per cent increase, the Office for National Statistics said.

Experian jumped 6.75 per cent after the world’s largest credit data company reported an increase in half-yearly profit, benefiting from sustained demand in key markets North America and Europe.

Fuller Smith & Turner’s shares jumped 11.5 per cent after the pub group’s current bookings rose 11 per cent from a year earlier, setting the stage for a strong Christmas season.

British power generator and network operator SSE topped the half-yearly earnings forecast, taking its shares up 2.02 per cent.

Europe

Europe’s benchmark Stoxx 600 climbed to a more than one-month high on Wednesday as investors were spurred by hopes for an end to central banks’ policy tightening. Fresh data from the US and the UK in recent days has shown inflation cooling more than expected, as investors will now monitor inflation data for the euro zone due on Friday.

The Stoxx 600 Index gained 0.42 per cent to 454.52. Meanwhile, the German DAX Index rose by 0.86 per cent to 15,748.17, and the French CAC 40 Index was up 0.4 per cent to close at 7,214.08.

German chip manufacturer Infineon rallied 9.24 per cent after higher-than-expected revenue for 2023, helped by strength in its automotive business.

Siemens Energy saw shares lift by 8.88 per cent as the German government on Tuesday said it had decided to backstop the troubled energy company with guarantees worth €7.5 billion.

Alstom fell 15.03 per cent to the bottom of the Stoxx 600 after the train-maker said it would cut jobs, sell assets, consider a capital increase and propose paying no dividend for the current fiscal year.

Swiss eye-care company Alcon fell 5.35 per cent after posting lower-than-expected third-quarter sales and narrowing its full-year outlook.

New York

Stocks rose across the board on Wall Street as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite indices all gained.

On Tuesday data showed US headline consumer prices were flat in October, against expectations for a 0.1 per cent rise. Core CPI, at 0.2 per cent, also came in below a forecast of 0.3 per cent.

Target shares surged as the big-box retailer forecast fourth-quarter profit largely above Wall Street expectations on easing supply-chain costs.

Among other stocks TJX fell as the off-price apparel chain cut its fourth-quarter profit forecast. Walt Disney shares gained on a report stating activist investor ValueAct Capital has taken a stake in the company.

Sirius XM rose as Warren Buffett’s Berkshire Hathaway took a stake in the audio entertainment company. – Additional reporting: Reuters, Bloomberg