Global markets make gains as economies begin Covid recovery

Global stock markets made moderate gains on Monday as increasing confidence about the rapid recovery of economies from the Covid-19 pandemic offset concerns about the speed of the market’s rally.

Dublin

Euronext Dublin outperformed its European peers on Monday, ending the day up 1 per cent led mainly by the airline sector.

Ryanair was up nearly 3 per cent, while Easyjet was up 4 per cent. "There was an announcement by the European Commission that they will be allowing US vaccinated travellers into the bloc in the summer, so that boosted airlines," noted a trader.

The news also boosted Dalata – the largest hotel operator in the State – which was up 4 per cent on the day. The banks also benefited, with AIB up almost 6 per cent and Bank of Ireland up 4 per cent.

State-backed domestic tourism incentives could unlock €6bn for economy – BPFI

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Asian shares at six-week highs, eyes on Fed, US GDP

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European shares retreat from record highs

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Assets in Irish private markets expected to double in five years

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Among the housebuilders, Cairn Homes was up 2.5 per cent, while Glenveagh Properties ended the day up 70 basis points.

Elsewhere, Paddy Power Betfair owner Flutter Entertainment continued recent gains, finishing the day up 1.5 per cent.

London

The FTSE-100 rose on Monday as mining and financial shares benefitted from growing hopes of an economic recovery, while a surge in shares of engineer IMI helped the mid-cap index outperform its blue-chip counterpart.

The FTSE-100 added 0.4 per cent, helped by gains in mining stocks as copper prices hit their highest in over 10 years and prices of other metals also rose.

Glencore shares jumped more than 3 per cent as an Australian state planning commission approved an extension to the company's Mangoola coal mine in the Upper Hunter Valley of New South Wales.

The domestically focussed mid-cap FTSE 250 index added 0.92 per cent, nearing a record high. Engineering firm IMI jumped 11 per cent to a seven year high after it raised its annual profit outlook.

Rolls Royce jumped 6 per cent to the top of the FTSE-100 index after it said on Friday it was in constructive talks with Spain over the sale of its Spanish unit ITP Aero.

Global education group Pearson rose 2.7 per cent after posting a 5 per cent increase in underlying revenue growth in the first quarter, helped by strong demand for online learning courses.

Europe

Germany’s Dax closed up 0.1 per cent, while the Cac in Paris was up 0.3 per cent.

In company news, publisher Pearson said that its sales rose 5 per cent in the first three months of the year despite facing Covid-19 problems as online learning at schools and universities lifted the company. Shares rose 3.6 per cent following the news.

Hostelworld shares rose 1.4 per cent after close to one in three shareholder votes were cast against a pay deal it had awarded to its bosses.

Funeral provider Dignity, whose board was last week taken over by the company's biggest shareholder, said it was looking for three new directors following the coup. Shares rose 0.6 per cent.

Finally shares in Standard Life Aberdeen rose 1.7 per cent after the company announced a rebrand to Abrdn.

New York

Wall Street’s main indexes rose on Monday as electric-car maker Tesla gained ahead its earnings report, kicking off this week’s results from heavyweight technology companies.

Tesla advanced 1.3 per cent as analysts expect the company to report a rise in first-quarter revenue following record deliveries. Its results are due after markets close.

Companies that constitute about 40 per cent of the S&P 500’s market cap report from Tuesday through Thursday, including Microsoft, Google parent Alphabet, Apple and Facebook. Shares of the companies were higher in early afternoon trading.

Seven of the 11 major S&P 500 sectors were trading higher, with financials and energy gaining the most, while defensive utilities and consumer staples led declines.

Of the 124 companies in the S&P 500 that have reported so far, 85.5 per cent have topped analysts’ earnings estimates, with Refinitiv IBES data now predicting a 34.3 per cent jump in profit growth.

Cryptocurrency and blockchain-related firms including Riot Blockchain and Marathon Patent Group rose 5 per cent each as bitcoin looked set to snap five straight days of losses. (Additional Reporting: Agencies)