European shares end at near one-week highs, boosted by tech stocks

European shares ended on Wednesday at near one-week highs, led by gains in technology and industrial stocks, even as investors worried about the outlook for global recovery amid a rise in Covid-19 cases due to the Omicron variant.

DUBLIN

The Iseq index closed in positive territory despite late news from Ryanair that it expects annual losses to be significantly higher than previously forecast. The index closed up 0.6 per cent on Wednesday at 8245.95.

Ryanair's share price held up well considering its announcement that it expects a net loss of between €250 million and €450 million versus an earlier estimate of between €100 million and €200 million. The airline also cut its January traffic estimate by a third on the back of travel restrictions recently imposed due to the Omicron variant. Ryanair closed down 0.1 per cent at €15.56 despite as aggressive sell-off in the afternoon.

The banks were in focus with Bank of Ireland up 3.5 per cent to €5.04 and AIB down 0.5 per cent to €2.13.

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Ires Reit, the State's largest private residential landlord, hit a 52-week high, gaining 4 per cent to €1.67 albeit on low volumes.

Other movers included house-builder Glenveagh, up 3.2 per cent to €1.22, while Greatcoat, which has announced a move into the Spanish market, closed 1.8 per cent higher at €1.11.

LONDON

The FTSE 100 ended higher as gains in industrial and financial stocks helped counter concerns over the impact of the Omicron variant on economic recovery and weaker-than-expected quarterly growth data.

After falling as much as 0.33 per cent, the blue-chip FTSE 100 index reversed course to end 0.6 per cent higher. Industrial and financials gained 1.1 per cent and 0.8 per cent respectively. The domestically-focussed mid-cap index added 1.1 per cent, with the travel and leisure sector among the top gainers.

The travel and leisure sector is among the worst performers this year, down 8.8 per cent so far this year, compared with a near 26 per cent rise in commodity stocks, including energy and industrial metal miners.

Healthcare investment firm Syncona jumped 5.5 per cent after saying that Swiss drugmaker Novartis is buying its Gyroscope Therapeutics for up to $1.5 billion.

EUROPE

The pan-European STOXX 600 climbed 0.8 per cent, adding to a 1.4 per cent jump in the previous session, which was also its best day in two weeks. Technology shares led gains, followed by industrials, travel and construction-related stocks.

Among stocks, Germany's Delivery Hero jumped 7.4 per cent to the top of the STOXX 600 after saying it would scale down its Foodpanda operations in the country and sell the subsidiary's Japan unit.

Container shipping giant Maersk gained 0.9 per cent after agreeing to buy Hong Kong-based LF Logistics for $3.6 billion in an all-cash deal.

Norway's Aker BP dropped 6.9 per cent and was at the bottom of the STOXX 600 with Lundin Energy after it announced plans to buy the oil and gas business of the Swedish firm.

Belgian visual tech firm Barco dropped 9 per cent after saying component shortages had caused delays that affected its third-quarter sales and forecast.

WALL STREET

The S&P 500 and the Nasdaq climbed on a boost from Tesla shares, while better-than-expected economic data added to signs the impact of the Omicron variant on the economic recovery could be limited.

Wall Street’s main indexes surged on Tuesday after three straight sessions of declines, but few market-moving catalysts and thin volumes in the last two weeks of trading this year are likely to push up volatility. In 2021 the S&P 500 index is up about 24 per cent.

Tesla jumped 7.5 per cent and was on pace to close at a $1 trillion market value. According to an interview released on Tuesday, Tesla chief executive Elon Musk said he had sold "enough stock" to reach his plan to sell 10 per cent of his shares in the company.

The US Food and Drug Administration is set to authorise Covid-19 treatment pills from both Pfizer and Merck this week, as per a Bloomberg News report. Merck climbed 1.1 per cent.

Caterpillar gained 1.6 per cent after brokerage Bernstein said it expects the industrial equipment maker to be the biggest beneficiary of an easing monetary policy in China.

Additional reporting: Reuters