Global stock indexes observed a positive trend on Monday, as investors eagerly anticipated this week’s earnings reports from major US technology-based corporations. Meanwhile, oil prices plummeted significantly subsequent to Israel’s attacks on Iran that did not affect oil and nuclear facilities.
In Dublin, Euronext Dublin slightly surpassed its global counterparts, ending the day with a modest increase of 0.7 per cent, despite low volumes due to the bank holiday. The standout performer was house builder Cairn Homes, augmenting by 2.3 per cent, following its recent steady rise, underpinned by heightened buyer interest. Of financial firms, AIB reported an increment of 0.7 per cent, mirroring the index, while Bank of Ireland performed disappointingly, marking a decrease of 0.7 per cent. Strong performance in the airline sector was showcased by Ryanair, Easyjet and Air France marking increases of 1.3, 2.8 and 3.8 per cent respectively. Among the building materials sector, Kingspan and Grafton Group saw an increase of 1.4 per cent and 1 per cent respectively.
Across in London, the prominent FTSE 100 surged by 0.4 per cent, spearheaded by travel, leisure, aerospace and defence stocks, although poor performance by commodity-linked firms stifled overall growth. The FTSE 250 saw a minor increase of 0.1 per cent. Boosted notably by online train ticket company Trainline, which announced a full-year revenue forecast increase for the second time in two months, the travel and leisure sector saw a jump of 1.4 per cent. In addition, a 9.3 per cent increase in Melrose’s shares featured prominently on the blue chip index, uplifting the aerospace and defence sector by 0.9 per cent, following the release of risk management and revenue-sharing partnerships explainer by the aerospace components manufacturer. However, the precious metal miners sector fell by 1.7 per cent in response to pressure on gold prices due to a stronger US dollar and Treasury yields.
With a 1.6% decrease, energy shares witnessed a downturn as oil prices depreciated. Both BP and Shell recorded over a 1.6% downfall each, and the sector was most intensely impacted by Ithaca Energy, which underwent a 2.4% loss.
Meanwhile, in Europe, stocks enjoyed an upturn as geopolitical tension in the Middle East showed signs of easing, fostering a positive sentiment. The Stoxx Europe 600 Index saw a surge by 0.5%, particularly attributing the boost to the construction and media industries. On the contrary, the declining oil prices pulled down the energy stocks. The benefit of low-cost crude, however, accelerated the airlines shares prices.
In Germany, the Dax ended its trading day with a 0.4% rise, while the Cac in France exhibited a 0.8% surge.
As the US heads into its elections’ final lap, Wall Street received a boost in anticipation of forthcoming revenue releases from several big enterprises. A stable situation over the weekend in the Middle East also bolstered the positive sentiment, proving no disruptions to energy supplies.
Google’s parent company Alphabet saw a 1% rise, while Meta Platforms, the owner of Facebook, reported a 0.6% rise. Apple shares too went up by 1%, in anticipation of their respective results later in the week.
Microsoft and Amazon too gear up to declare their earnings this week. These five companies combinedly hold approximately 23% of the S&P 500′s weightage, and the investor reactions following their results will play a crucial role in determining whether the indexes keep rising or recede.
At Eastern Time 11.51am, the Dow Jones Industrial Average marked a surge by 0.7%; the S&P 500 advanced by 0.4%; and the Nasdaq Composite rose by 0.5%.
The airline stocks also saw an upward trend with the S&P 500 passenger airlines index escalating by 3.4% to reach its highest value in over two years.
Boeing shares, however, fell by 1.1% following the company’s announcement of a stock offering. This could rake in up to $22 billion, aiding their financial situation amidst an on-going employee strike.