Global shares edge upwards as government bond yields resume climb

Global shares edged upwards and government bond yields resumed their upward climb on Friday on signs of persistent prices pressures, while oil was poised for a 13 per cent weekly fall following reserve releases.

Dublin

The Irish index of shares closed the day marginally lower at 7187.46.

Shares in packaging giant Smurfit Kappa rose on the Irish market, gaining as the company said it would quit the Russian market. The Dublin-based company is joining a a number of multinationals that have pledged to stop business in the country after it invaded Ukraine in late February. SKG said its Russian business represented less than 1 per cent of forecast sales.

Irish housebuilder Cairn Homes saw its shares end marginally off at €1.24 after the company said it planned to seek permission more than 1,300 residential units in three separate fast-track planning applications in the coming days.

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Meanwhile, shares in food giant Kerry Group dipped 0.74 per cent to end the session at €100.35. The company said on Friday it had completed the acquisition of US-based Natreon, a supplier of branded ayurvedic botanical ingredients.

Banking shares were mixed, with Bank of Ireland and AIB gaining more than 1 per cent each, but Permanent TSB lost more than 2 per cent to close the week at €1.64.

London

London's FTSE 100 rose on Friday and marked its fourth consecutive weekly gains with consumer staples and miners leading advances, while sports good retailer Frasers jumped after unveiling a new share buyback plan.

The blue-chip FTSE 100 closed 0.3 per cent higher, with Reckitt Benckiser Group climbing 3.1 per cent after Barclays raised its price target on the Lysol cleaning products maker's stock.

Other consumer staples including Unilever and Diageo were among the top gainers, benefiting from a weaker pound.

Miners rose more than 2.1 per cent, with Rio Tinto, Glencore and Anglo American up between 1.3 per cent and 2.6 per cent.

The domestically-focused mid-cap FTSE 250 index advanced 0.3 per cent on Friday, with Bridgepoint Group up 3.8 per cent, among top gainers after Citigroup upgraded the stock to 'buy' from 'neutral'.

Frasers gained 3.5 per cent after announcing a new £70 million share buyback plan.

Europe

Worries about the fallout from the Russian invasion of Ukraine, compounded by likely central bank tightening to control surging inflation, saw the pan-European Stoxx 600 index mark its first quarterly loss in two years last quarter.

The index on Friday rose 0.5 per cent higher. Banks gained 1.2 per cent on the day with Spanish lender Santander firming 2.6 per cent after reiterating its 2022 profitability target.

Miners and oil stocks led gains on the day and leaped 18 per cent and 14 per cent respectively last quarter amid surging commodity prices due to the Ukraine war.

Adding to nervousness, data showed euro-zone inflation surged to 7.5 per cent in March, hitting another record high months before it is set to peak.

Technology stocks were among the worst performers last quarter on inflation worries, down 17 per cent, and slipped another 0.3 per cent on Friday.

Among individual stocks, French catering and food services group Sodexo fell 9.5 per cent on narrowing its full-year organic revenue growth forecast.

New York

US equities reversed gains and Treasury yields surged as a solid US jobs report buttressed the Federal Reserve’s case to use aggressive interest-rate hikes to tackle inflation.

The S&P 500 fell while the US yield curve extended its recent flattening as investors evaluated the economic outlook amid tightening monetary policy and Russia’s war in Ukraine.

The dollar gained as US payrolls slightly missed expectations and the March unemployment rate fell to 3.6 per cent. Meanwhile, an ISM manufacturing survey disappointed, with higher-than-expected prices paid. – Additional reporting: Reuters, Bloomberg