Several European indexes slipped in cautious trading on Tuesday as a fall in technology and chemicals stocks offset a rally in commodity-linked shares spurred by hopes that Beijing could ease Covid-19 curbs following recent protests. Shares in the UK were higher. In the US, Wall Street’s main indexes fell as growth stocks extended declines, overshadowing a rise in energy shares.
Dublin
The Iseq index was little changed, as stuttering performances from indigenous Irish multinationals wiped out gains in bank stocks, buoyed by the return of bankers’ bonuses and the impact investors believe this could have on their performance.
Bank of Ireland finished the session ahead by 4.1 per cent to €7.47 per share, while AIB was up by almost 5 per cent to €3.07. Permanent TSB rose by almost 1.8 per cent to €1.75.
"We have a fundamental misunderstanding of our housing need."
Some major Irish companies focused on global trade fared less well. Insulation giant Kingspan was down almost 2.8 per cent to €54.04, while food group Kerry fell almost 2 per cent to €90.86.
London
The FTSE 100 closed at its highest price since August after seeing a boost from banking stocks and more upbeat sentiment in Asian markets. London’s top index finished the day up 0.51 per cent.
Asian-focused businesses HSBC, Prudential and Standard Chartered jumped to the top of the blue-chip index, signalling that investors were more optimistic of the Chinese government loosening its social restrictions and increasing vaccination rates. This is despite political unrest continuing in China as citizens call for an end to the nation’s Covid rules.
HSBC announced it has agreed to sell its business in Canada to the Royal Bank of Canada for $13.5 billion Canadian (€9.6 billion). The move sent HSBC’s share price up by 4.4 per cent.
Budget airline EasyJet has significantly narrowed its losses from the £1.1 billion reported last year, to £178 million in pretax losses in the latest financial year. Its shares were down by 2.6 per cent.
William Hill owner 888 has said it is ramping up its cost-saving plans with a new target of £87 million in operating costs in 2023 alone. Shares in 888 edged up by 0.29 per cent.
Europe
The pan-European Stoxx 600 index closed a volatile session 0.1 per cent lower after having risen up to 0.53 per cent. European miners and oil majors gained 2.7 per cent and 1.8 per cent respectively, tracking metal and crude prices, while technology and chemical stocks declined 1.2 per cent and 1.7 per cent.
The Stoxx 600 is on course to end November higher, boosted by recent optimism that central banks might soften their stance on monetary policy tightening in coming months.
Still, the German Dax dropped by 0.19 per cent and the French Cac40 crept up by just 0.06 per cent.
ASM International added 2.9 per cent after the Dutch semi-conductor supplier said it now anticipates a smaller fall in fourth-quarter China sales due to US export restrictions.
New York
The S&P 500 energy sector index was up only 0.6 per cent, after rising as much as 2 per cent earlier in the session. Oil prices pared gains on concerns that Opec+ would keep its output unchanged at its December meeting.
Gains in growth stocks earlier in the day proved short-lived, while US Treasury yields rose. Investors also sold Treasuries as they anticipate details about Amazon’s highly anticipated multitranche corporate bond deal.
Shares of Microsoft, Apple, Netflix and Amazon were down between 0.9 per cent and 1.9 per cent.
US-listed shares of Chinese companies Alibaba, Pinduoduo and JD.com rose between 5.7 per cent and 8.9 per cent as China broadened equity financing channels for property developers.
Shares of Chinese internet firm Bilibili jumped 22.2 per cent after posting upbeat quarterly results.
— Additional reporting: Reuters/PA
