On Friday, Dublin’s market experienced a slight elevation of 0.27 per cent, a performance below that of its European counterparts. The marginal rise came amidst a troubled week on the financial landscape, stirred by escalating oil prices and increasing Middle East tensions due to the incursion of Israel into Lebanon.
From the banking sector’s standpoint, the day concluded with mixed outcomes. Shares of AIB surged by 1.78 per cent to reach €5.15, whereas Bank of Ireland experienced a slight decrease of 0.02 per cent, closing at €9.20. Additionally, Permanent TSB shares dipped by 0.30 per cent, ending at €1.64. However, home builders experienced a favourable day with Cairn Homes’ shares surging by 1.49 per cent to €2.05 while Glenveagh Properties saw a 1.50 per cent spike, amounting to €1.62.
Though Kerry Group’s shares declined to €93.04, marking a fall of 0.27 per cent, Glanbia shares climbed by 0.99 per cent to €15.31. Also, Ryanair outstripped its European counterpart, gaining 0.78 to €16.87. Dalata Hotels’ shares also increased, ending at €4.04 with a 0.75 per cent rise.
The British economy, after two months of no progress, saw growth in August, a positive sign for finance minister Rachel Reeves just before the new Labour government’s first budget, set to be presented later in this month. The Office for National Statistics confirmed a growth of 0.2 per cent per month in August, aligning with the economists’ predictions on a Reuters poll.
Upon receiving the news, Ms Reeves voiced satisfaction and emphasized that economic growth stands as the top government priority. The data revealed that all major sectors exhibited growth in August. However, the dominant services sector lagged below expectations, which was mitigated by an appreciable comeback in the manufacturing and construction industry. The monthly gross domestic output estimates for June and July remained unaltered, where the economy stayed stagnant. Nonetheless, the figures for April and May saw revisions to -0.1 per cent and +0.2 per cent, respectively, comparing to the earlier estimates of 0.0 per cent and +0.4 per cent.
European markets rebounded from earlier downturns to close on a week-high last Friday, as investor interest pivoted towards news about China’s stimulus strategies, corporate financial results, and a rate decision from the European Central Bank.
The pan-European Stoxx 600 index rose half a per cent, setting itself up for a weekly rise of 0.6 per cent. Following a week of market swings amid policy uncertainty in Shanghai, heightened Middle East-related oil prices and questioning US data on persistent inflation dips, markets closed.
Both Germany’s Dax and Spain’s Ibex indices increased by 0.7 per cent and 0.5 per cent respectively. France’s leading Cac 40 also ended on a high despite initial setbacks, boosted by the government’s latest budget that proposed €60 billion ($65.5 billion) in spending reductions and increased taxes for the rich and large corporates.
Investors were circumspect in anticipation of the upcoming Saturday press conference by China’s finance ministry, in hope of significant stimulus revelations.
Across the Atlantic, JPMorgan Chase saw shares rise by 5 per cent after an unexpected increase in net interest earnings and upgraded prediction for this vital revenue generator. Profit-beating results helped Wells Fargo surge 5.6 per cent. Traders simultaneously scrutinised market indicators, noting that a measure of prices paid to US manufacturers remained static in September. This implies a further stabilisation in inflation rates. However, consumer confidence saw its first decline in three months as the continued high living costs clouded an otherwise optimistic job market outlook.
The S&P 500 went up 0.6 per cent, Nasdaq saw a 0.1 per cent increase and The Dow Jones Industrial Average advanced by 0.8 per cent in the morning. Meanwhile, Tesla fell by 7.7 per cent due to the unimpressive reveal of its much-awaited autonomous taxi. Conversely, Uber Technologies and Lyft saw a minimum 9.3 per cent upward movement.