European stocks flat amid pressure on bank stocks

European stocks ended flat yesterday after central banks pledged to keep monetary policy loose despite recent signs of a rise in inflation.

Stocks drifted higher earlier in the day, holding near record highs after US Federal Reserve officials reaffirmed a dovish stance on monetary policy. Similar comments from European Central Bank (ECB) policymakers helped equity markets in the region stabilise, but bank stocks came under pressure as a result.

DUBLIN

The Iseq closed up 0.6 per cent after a mixed performance for its key stocks. Ryanair slid 0.9 per cent to €16.53 and Irish banks joined in the weak day for financial stocks across Europe, with AIB declining 0.9 per cent to €2.55 and Bank of Ireland ending 1.6 per cent lower at €5.16.

Among other fallers, packaging giant Smurfit Kappa lost 0.8 per cent to close at €43.72.

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But there were better fortunes for cement maker CRH, the largest stock on the index, which finished up 0.6 per cent at €42.18 while food group Kerry posted a 1.9 per cent gain to close at €112.50.

Real estate investment trust stock Hibernia Reit climbed 0.9 per cent despite warning that a squeeze on building materials would drive up construction costs for up to nine months. The company reported a €61 million profit for the year ending March 31st.

Glenveagh Properties also had a good session, advancing 2.5 per cent to about 94 cent.

LONDON

The blue-chip FTSE 100 finished flat, while the mid-cap FTSE 250 rose 0.9 per cent thanks to soaring performances by some of its constituent stocks.

Marks & Spencer jumped 8.5 per cent to a one-year high after the retailer said it had traded well in the early weeks of the 2021-22 and that earnings would recover after an 88 per cent slump in full-year profit.

Spire Healthcare jumped 26.9 per cent after Australia's Ramsay Health Care said it would buy the British hospital operator.

Vectura Group surged 33.7 per cent – its best day on record – after the mid-cap pharmaceutical company focused on inhaled medicines agreed to a £958 million pound (€1.1 billion) takeover by global investment firm Carlyle Group.

Speciality chemical maker Croda International climbed 2.6 per cent after analysts at Goldman Sachs upgraded the stock to "buy" from "sell", while Softcat added 6.9 per cent after the IT services and consulting firm said it expected annual results ahead of expectations.

EUROPE

The pan-European Stoxx 600 index was flat, with bank falls offsetting travel and leisure gains. The Dax edged down 0.1 per cent in Frankfurt, while the Cac 40 was modestly positive in Paris.

French food firm Danone slipped 1.8 per cent after analysts at Berenberg downgraded the stock to "sell", citing the hard to fix low-growth nature of most of its businesses.

Global stock markets had earlier taken comfort as Fed officials reiterated a dovish monetary policy stance, while ECB board member Fabio Panetta said the bank should not reduce the pace of asset purchases from next month.

NEW YORK

A choppy day of trading on Wall Street ended with stocks closing higher yesterday, reversing much of the S&P 500’s modest pullback the day before. The benchmark index ended just under 0.2 per cent higher after wavering between small gains and losses.

Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The S&P 500’s gains were tempered by declines in healthcare, technology and other stocks.

The Dow, which turned 125 years old yesterday, gained 10.59 points, or less than 0.1 per cent, to 34,323.05. The Nasdaq added 80.82 points, or 0.6 per cent, to 13,738.

– Additional reporting: Reuters