A strong comeback by banks on Wednesday helped Europe’s main stock index log its biggest one-day gain since November, even though the continent’s largest company by market capitalisation, Novo Nordisk, slid after trimming its full-year profit outlook.
Signalling a continued pickup in investor sentiment, the “fear gauge” volatility index fell for a second day, having hit its highest level since March 2022 earlier in the week.
Dublin
The Iseq finished in positive territory for a second consecutive day, rising 1.35 per cent on Wednesday after a gain of 0.6 in Tuesday’s session, which came in the wake of Monday’s global sell-offs. On a day of solid gains for banking stocks across Europe, both AIB and Bank of Ireland put in a strong performance, with AIB rising 3.3 per cent to €5.01 and Bank of Ireland finishing up 3.7 per cent at €9.53.
Ryanair managed a 0.25 per cent nudge up to €14.17, while insulation-maker Kingspan advanced 1.6 per cent to €81.05. Kerry Group was among the few stocks to end the session in the red, with the food giant slipping 0.5 per cent to €85.95.
London
The blue-chip FTSE 100 index ended 1.8 per cent higher in its best showing in more than four months, while the mid-cap FTSE 250 index closed 1 per cent higher.
Lenders HSBC, Lloyds Banking and Barclays were among the top performers on the FTSE 100 index. The investment banking and brokerage sector jumped 1.5 per cent, with wealth manager Quilter gaining 4.6 per cent after delivering half-year earnings above expectations.
Energy giants Shell and BP also got a boost as oil prices rebounded from multi-month lows.
WPP fell about 2 per cent after the ad group cut its annual revenue growth outlook and agreed to sell its controlling stake in FGS Global to KKR. Bottler Coca-Cola HBC fell 1.5 per cent despite boosting its annual operating profit and revenue forecast and a higher first-half revenue.
Europe
The pan-European Stoxx 600 closed 1.5 per cent higher but remained below the key 500-point mark following the recent sell-off sparked by US recession fears. Main indices in Germany, France and Spain also rose by between 1.5 per cent and 2 per cent.
Leading sectoral gains, the banking index jumped 2.7 per cent to notch its best single-day gain in more than a year, having lost 11 per cent over the past five days, with ABN Amro jumping 5.6 per cent after raising its full-year net interest income forecast.
Notable stock movers included Novo Nordisk, which clocked its steepest one-day fall since August 2022, down 6.7 per cent, following a disappointing profit outlook and weaker-than-expected sales of weight-loss drug Wegovy that stirred worries about stiffening competition from Eli Lilly.
German sportswear maker Puma slumped 10.8 per cent after narrowing its full-year core profit outlook.
Roche climbed 3 per cent on a report the Swiss pharmaceutical company is considering divesting cancer data specialist Flatiron Health.
Maersk fell 2.3 per cent after its second-quarter results, with analysts citing higher capital expenditure guidance as one negative factor. It also expects global container shipping growth to slow from this year’s strong start.
New York
Wall Street’s main indices advanced in early trading, aided by gains in mega-cap stocks and a dovish turn by Japan’s top policymaker after a surprise interest rate hike last week that partly sparked heavy volatility in global markets.
Most technology stocks notched gains of at least 2 per cent. Tesla, however, dipped nearly 1 per cent.
Fortinet jumped 24.6 per cent after the cybersecurity firm raised its annual revenue forecast.
On the flipside, Airbnb slid 12.7 per cent to log its biggest one-day drop after the company forecast third-quarter revenue below estimates and warned of shorter booking windows, suggesting holidaymakers were waiting until the last minute to book due to economic uncertainty.
Walt Disney fell 1.9 per cent as it predicted a “moderation in demand” at its theme park business in the coming quarters. – Additional reporting: Reuters
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