Global equity indices experienced a slight increase on Wednesday in response to eagerly awaited US inflation data. The data reflected a continued decline in consumer price increases in the world’s biggest economy, strengthening the recent disinflationary trend, though gradually, and diffusing some tension in markets still recovering from last week’s significant slump.
DUBLIN
The Iseq index in Ireland performed weakly compared to its neighbours, dipping 0.4% amidst low trade volumes. Glanbia, a food company based in Kilkenny, saw the largest drop, plunging 8.5% to €16.45 per share after revealing decreased revenues and earnings for the six months ending June.
Bank shares displayed varied performance with AIB depreciating 0.5% to €5.03 per share whereas PTSB plunged 2.9% to €1.50. On the other hand, Bank of Ireland’s shares climbed 0.6% to €5.03.
In addition, Ryanair’s shares declined by 1.3% to €14.80, mirroring a broader trend among airlines around the globe following several carriers’ decision to suspend flights to the Middle East due to escalating regional confrontations.
On an optimistic note, insulation manufacturer Kingspan’s shares grew 1% to €81.60 per share and Kerry Group also experienced an almost 0.9% increase in its share price, ending the session at €88.15.
LONDON
The FTSE 100, UK’s main equity index, saw an uptick of 0.5% stirred by data that showed UK’s inflation in July rose lesser than predicted. Concurrently, the mid-cap FTSE 250 advanced 0.8% led by a 14.3% surge in Playtech’s shares.
This leap was spurred by an announcement from Paddy Power’s owner, Flutter, confirming discussions to buy the Italian division of the group for £2 billion (€2.33 billion). Following this declaration and post an impressive half-yearly result announcement on Tuesday, the first following its primary listing transfer to New York, Flutter’s shares listed in London soared 10.5%, topping the index.
The latest inflation figures from the UK have buoyed homebuilding stocks, as anticipation grows for decreasing mortgage rates and higher demand for new houses. The shares of Persimmon, Taylor Wimpey, and Barratt Developments experienced gains between 3.4 per cent and 3.8 per cent, buoyed by JP Morgan’s continuation of their overweight ratings.
European markets held onto their gains from Tuesday with the prominent Stoxx 50 index marking an increase of 0.6 per cent, while the pan-European Stoxx 600 index witnessed a rise of 0.4 per cent, aided by backing from UBS Group. The Swiss bank’s shares elevated after announcing a Q2 net profit of $1.1 billion, surpassing the predicted forecasts.
High-end sector shares showed growth, with Hermes gaining 1.8 per cent and Louis Vuitton’s parent company, LVMH, increasing by 1.5 per cent. Additionally, Straumann shares saw a dramatic rise of 11.3 per cent following an announcement about their DrSmile aligner business’ sale and an upgrade in its yearly forecast.
In the US, the leading indices portrayed a varied scene on Wednesday. The Nasdaq Composite, the Dow Jones Industrial Average, and the S&P 500 mostly experienced incremental gains between 0.4 per cent and 0.5 per cent by the end of trade in Dublin.
However, Alphabet’s shares dipped 3.6 per cent due to news indicating that the US justice department may mull options that could fragment the search engine firm. Alphabet’s losses dragged the Nasdaq and communication services sectors down. Flutter’s New York-listed shares surged more than 8 per cent following the announcement from Playtech.
AI stocks including Nvidia, Super Micro, and Dell flipped their early advances after notable comeback this week. In contrast, Kellanova shares leapt by over 7.7 per cent when Mars, the multinational confectionery, and snack behemoth, signalled their intent to acquire the maker of Cheez-It and Pringles in a deal valued approximately at $36 billion (£32.7 billion). Cardinal Health’s shares escalated 5.2 per cent after updating their 2025 profit outlook. Additional information provided by Bloomberg and Reuters.
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