Global stocks rose on Friday at the end of a volatile week for markets, with sentiment buoyed by Apple’s earnings report and an in-line US inflation reading.
Dublin
Euronext Dublin dropped 1 per cent as the index was dragged by some of its bigger hitters, with weakness in the banks.
The European Central Bank cut interest rates by a further 0.25 percentage points on Thursday while keeping the door open to further rate cuts as Europe’s flagging economy and the risk of a fresh trade war with the US took precedence over inflation worries.
In the first full day of trading following that news, Bank of Ireland finished the day down 1.2 per cent, while AIB was down 0.6 per cent. “Lower interest rates would have had an effect on that,” noted a trader.
Meanwhile, budget airline Ryanair closed down 1.5 per cent. “It has had a fairly significant rally since posting results on Monday, so it’s probably not surprising to see it give some of those gains back,” a trader said.
On the upside, housebuilders Cairn Homes and Glenveagh Properties closed up 4.8 per cent and 2.4 per cent respectively. In the same sector, insulation specialist Kingspan was down 1.8 per cent.
Among the food names, sandwich-maker Greencore finished the day up 2.2 per cent, while Kerry Group and Glanbia were down 1 per cent and 2.2 per cent respectively.
London
The blue-chip FTSE 100 closed up 0.3 per cent to hit a record high as it logged its best month in more than two years, while investors prepared for the Bank of England’s rate decision next week.
Meanwhile, the domestically-focused mid-cap FTSE 250 rose 0.6 per cent and was hovering at a near two-month high. It gained 0.8 per cent this month.
The gains were largely driven by US president Donald Trump’s decision to refrain from implementing aggressive tariffs on his first days in office. This unexpected move calmed the markets, with many analysts suggesting the tariff threat will serve as a negotiation tool.
British engineering firm Smiths Group’s shares surged 10.8 per cent to an all-time high after it said it planned to spin off its Smiths Detection business under pressure from US activist investor Engine Capital.
Precious metal miners lost 1.2 per cent after jumping 6.8 per cent in the previous session, as prices of bullion hit an all-time high. On the economic front, British house prices lost some of their momentum in January, rising by just 0.1 per cent.
Europe
On the Continent, the Euro Stoxx 600 index was last up 0.1 per cent, with tech shares up 1.7 per cent.
Elsewhere in Europe, trading was steady, with the German Dax inching back slightly after a string of record performances this week. The Cac 40 ended 0.11 per cent higher for the day and the Dax index was down 0.07 per cent.
Euro zone short-dated government bond yields were on track to record their biggest weekly drop in months, after a raft of weak economic data led traders to ramp up their bets on future rate cuts from the European Central Bank.
New York
The S&P 500 and the Nasdaq rose, as Apple gained following a strong sales forecast and a reading of the US central bank’s favoured inflation gauge reinforced expectations that the Fed would keep interest rates unchanged for longer.
Apple lost some steam and was up 0.7 per cent after upbeat executive comments in its earnings on Thursday, in a sign the company expects to recover from a dip in iPhone sales as it rolls out AI features.
Keeping gains in check on the Dow, Chevron dropped 3.7 per cent after reporting fourth-quarter earnings below estimates.
Exxon Mobil also fell 0.6 per cent after quarterly results, pulling the energy subsector down 1.2 per cent. – Additional reporting: Agencies
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