European shares marked their best week since mid-March, ending Friday on a strong note with sentiment lifted by upbeat US economic data and easing investor bets about aggressive interest rate hikes.
A rally on Wall Street on some strong retail and technology earnings and upbeat consumer spending data for April helped calm some worries about slowing economic growth that had roiled markets. Data also showed US inflation slowed last month.
Dublin
The Iseq added 1.4 per cent as Irish stocks were lifted by the more positive equity markets in Europe and the United States. Building materials group CRH, the largest stock on the index, rose 1 per cent to €38.74, while Ryanair nudged up 0.25 per cent to finish the week at €14.74.
Smurfit Kappa was another good performer, with the packaging company posting a 2.2 per cent gain to close at €38.28, while Paddy Power owner Flutter Entertainment added 2.4 per cent to €112.65.
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AIB closed 0.65 per cent higher at €2.48, but Bank of Ireland ranked among the few fallers in the session, declining 0.7 per cent to €6.35.
London
London’s blue-chip FTSE 100 underperformed on Friday as energy stocks tracked oil prices lower, and utilities worried about a potential windfall tax. The FTSE 100 inched 0.3 per cent higher, recording its best weekly showing since mid-March, although oil and gas stocks came under renewed pressure after the UK government’s windfall tax plan this week.
Banks gained 1.1 per cent, while UK-listed global miners such as Glencore, Rio Tinto and Antofagasta rose about 1.5 per cent each as copper and iron ore prices were boosted by a weaker dollar.
However, oil majors such as BP and Shell slipped about 2 per cent after Britain announced a 25 per cent windfall tax on oil and gas producers’ profits on Thursday.
Power generators such as SSE, Centrica and Drax dropped between 1.6 per cent and 4.2 per cent, while Harbour Energy, the biggest UK North Sea oil and gas producer, dropped 10.8 per cent and EnQuest fell 10.4 per cent.
The domestically oriented FTSE 250 midcap index gained 0.6 per cent, with transport group and Aircoach parent FirstGroup extending gains for a second day after attracting buyout interest from an investment firm.
Food delivery company Deliveroo slipped 1.4 per cent after JPMorgan downgraded the stock to “neutral”, while LSL Property Services slipped 4.2 per cent after it said surging inflation would hit annual profit.
Europe
The pan-European Stoxx 600 index added 1.4 per cent on Friday, rising for a third consecutive session, as investors’ mood brightened ahead of the weekend. The weekly gain was 3 per cent. In Frankfurt, the Dax added 1.6 per cent, while in Paris, the Cac 40 was up by the same percentage.
However, the Stoxx 600 is still on track to end May lower, leaving March as the only month it has risen this year.
Technology stocks were the biggest sectoral gainers, up 3.3 per cent, while industrials and luxury stocks were also among the biggest boosts to the Stoxx 600.
New York
Wall Street stocks rallied in early trading, boosted by upbeat earnings, strength in consumer spending and signs that inflation was peaking, easing worries about a sharp slowdown in economic growth.
Ulta Beauty gained 11.1 per cent to top the S&P 500 index after the beauty products retailer posted strong first-quarter results, helped by easing Covid curbs.
Dell Technologies jumped 11.6 per cent after it posted upbeat quarterly profit and revenue as enterprises invested heavily in supporting hybrid work.
The US commerce department’s report showed consumer spending rose by a more-than-expected 0.9 per cent in April and inflation rose at a slower rate, raising hopes that the Federal Reserve might not hike rates as aggressively as previously thought. Additional reporting: – Reuters
