European stocks closed at a more than one-month high, aided by bank stocks as investors hoped a new budget could be passed in France after prime minister Michel Barnier’s government was toppled.
Political uncertainty in France has weighed on the Cac 40 index in Paris ever since president Emmanuel Macron called on snap elections in June. The index is the worst performer among top European markets, though it managed to edge up 0.3 per cent on Thursday.
Dublin
The Iseq rose 0.6 per cent, as banking stocks and Ryanair were among those posting decent gains. The airline added almost 2.7 per cent to €19.54, while AIB climbed by the same percentage to reach €5.40 and Bank of Ireland closed at €8.56, up 1.7 per cent on the day.
The gains were partially offset by a more lacklustre performance for stocks including building materials group Kingspan, which fell 1.5 per cent to €71.40, and Kerry Group, which declined 1.8 per cent to €89.85.
London
The FTSE 100 index was barely changed, as gains in the personal goods sector were limited by losses in real estate, while Frasers dropped to a more than two-year low after lowering its annual profit forecast. The blue-chip FTSE 100 was up 0.2 per cent, while the midcap FTSE 250 was flat.
The personal goods sector gained 3.3 per cent, led by Watches of Switzerland, which climbed 14.2 per cent after reaffirming its 2025 guidance.
Frasers dropped 10.6 per cent after the retailer said it felt “kicked in the face” by the UK government’s budget, blaming it for a drop in consumer confidence that forced a cut to annual profit guidance.
Shell shares fell 1.4 per cent after the company and Norway’s Equinor said they will merge their British North Sea assets to form what is set to be the ageing basin’s largest oil and gas company.
Europe
The pan-European Stoxx 600 finished 0.4 per cent higher, logging its sixth-straight session of advances. An index tracking banks in the currency union led sectoral gains with a 3.2 per cent advance as the risk premium investors demand to hold French debt rather than German Bunds eased further from a 12-year high.
Major French lenders also rose, with BNP Paribas, Societe Generale and Credit Agricole up between 2.3 per cent and 4.3 per cent.
Investors took comfort from remarks by Marine Le Pen of the far-right National Rally (RN), which voted to oust Barnier, saying that she had no plans to seek the removal of Macron and that a budget could be passed within weeks.
Germany’s Dax added 0.6 per cent to close at an all time high above 20,000 points for the third-straight day despite a fragile economy and political environment.
German copper producer Aurubis jumped 11 per cent after a better-than-expected dividend proposal, while Safran fell 7.3 per cent after the French jet engine maker issued new financial targets.
New York
Wall Street’s main indexes were mostly flat on Thursday after recording all-time closing highs in the previous session, with focus on the monthly employment report due on Friday as markets mostly brushed off weekly jobless claims data.
Tesla outperformed with a 3.5 per cent gain after at least two brokerages lifted their price target on the electric vehicle maker’s stock.
Southwest Airlines gained 3.9 per cent as the carrier raised its forecast for fourth-quarter revenue per available seat miles, while American Airlines added 15 per cent after lifting its fourth-quarter adjusted earnings forecast.
Synopsys fell 10.7 per cent after the chip design software firm forecast fiscal 2025 revenue below expectations, in part due to a slump in China sales. – Additional reporting: Reuters
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