Major European stock indices showed mixed performance on Monday, with many investors gearing up for critical inflation numbers from the United States. These figures will likely influence the Federal Reserve’s future monetary strategies and give insight into possible recession threats, amongst an influx of other pertinent European data. Key statistics concerning US consumer and producer costs, as well as preliminary data on eurozone job and economic growth, are expected to be made public this week.
The Irish Stock Exchange (Iseq) saw a slight depreciation, ending the trading day 0.1% lower. This came as a result of Ryanair shares falling by 1% to their closing price of €14.91, and the Bank of Ireland finishing down 0.9% at €9.41. Shares in AIB also declined, decreasing by 0.4% to just below €5. Conversely, Cairn Homes saw a rise of 1.5%, closing at €1.81. Kerry and Kingspan also registered gains, finishing at €86.85 and €80.85 respectively.
British markets commenced the week optimistically, with strengthening oil and metal prices supporting resource-linked stocks. The news of India’s Bharti Enterprises acquiring a significant stake in BT Group further aided this positivity, causing the latter’s shares to soar by 8.4%. Consequently, the FTSE 100 and the mid-cap FTSE 250 indices recorded gains of 0.5% and 0.3% respectively at close.
Buoyed by an increase in gold prices, precious metal miners topped the FTSE 350 sector gains, rising by around 2%. In addition, energy shares saw a 1% rise as the potentiality for bigger conflict in the Middle East resulted in higher oil prices.
Elsewhere, British insurer Lancashire Holdings outperformed on the mid-cap index with a 4.5% increase, extending the upward trend from the previous trading session. Key data concerning UK inflation, salaries, and GDP are also set to be released this week.
After a rather uneventful week, the Stoxx 600 index concluded with little to no change, despite recovering from a significant drop in risk assets the previous Monday, driven by concerns over a possible recession in the US.
Variations were led by energy and raw materials, which recorded noticeable improvements, reflecting a considerable surge in the prices of oil and metal. However, the real estate sector suffered the most, observing a 0.9% dip.
Insurance stocks including Hannover Re, which reported better than anticipated results, gaining a 5% increase, were also part of the sectors that benefitted. Orlen, Poland’s leading refinery, saw almost a 5% climb after preliminary results for the second quarter surpassed expectations.
On the other hand, Vestas, the world’s leading wind turbine manufacturer, suffered a near 8% drop following their warning of a loss for the second quarter and reduced their profit margin and revenue projection for the year.
In Wall Street, the trends were uncertain as investors are awaiting a wave of economic information this week. As lunchtime approached in New York, most of the “Magnificent Seven” shares were decreasing, with Tesla being the biggest loser, witnessing a 1.8% fall. Nvidia, however, saw a rise of 4%, potentially increasing its market value by nearly $100 billion.
Investors are expected to remain apprehensive until the US consumer price index (CPI) data is released on Wednesday, followed by data on retail sales on Thursday. Additionally, earning declarations from Walmart and Home Depot will provide important insights on consumer spending in the largest global economy.
Starbucks enjoyed a rise of 3.5% due to reports suggesting that the activist investor group Starboard Value who has shares in the coffee giant, is calling for improvements in the company’s share price. Driving the trend, KeyCorp’s shares soared nearly 11.9% following the purchase of a minority stake by Canada’s Scotiabank.
More details were reported by Reuters.