On Monday, markets demonstrated mixed performances as players anticipated the verdict on the US central bank’s interest rates due on Wednesday. Speculators have forecast a 61% possibility for a 50-basis-point rate reduction and a total
relaxation of 120 basis points in 2024.
The Bank of England, convening this Thursday, is projected to maintain existing rates. Participants will be predominantly waiting to glean any insights regarding future plans for the year, as well as updates related to bond sales.
Highlights from the Dublin market revealed a slight negative trend in share index at the close of the day. This was owing to a reduction in banking shares, although gains were noticed in the property and select financial sectors. Shares of AIB and Bank of Ireland dropped by 1% and 1.25% respectively, while Permanent TSB observed a decrease of 1.8%. Insurance firm FBD raised its share value by 1.2%, concluding at €12.80. Meanwhile, food company Glanbia’s shares dropped by over 0.5% while Irish Continental shares were 1.45% down for the day.
London’s FTSE 100 index rose by 0.1%, and the mid-cap FTSE 250 saw a 0.2% increase. The travel and leisure index rose by 0.6% following a 15.1% increase in Playtech Plc. The life insurance section, however, fell by 0.9% after SunLife’s sale was halted by Phoenix Group.
In Europe, the STOXX 600 index fell by 0.2%, breaking a three-day positive streak. In France, Rexel observed a 9.1% increase after rejecting an acquisition proposal from Brad Jacobs-led QXO.
Ipsen, a French pharmaceutical company, saw a 3.7% increase in their shares following an upgrade in their rating from “sector perform” to “outperform” by RBC. The optimism for Ipsen is due to its liver disease medication, Iqirvo (PBC), which received approval from the US FDA back in June.
Unfortunately, Nestle’s shares experienced a 1% decrease, negatively impacting the benchmark index. This comes after Morgan Stanley downgraded the stock’s rating to “underweight” and also reduced its target price.
The Nasdaq and S&P 500 were impacted by technology stocks as cautious investors await a vital monetary policy decision from the Federal Reserve. There is a general expectation for a significant decrease in borrowing costs from most traders. Chip stocks sensitive to rate fluctuations such as Nvidia, Broadcom and Qualcomm experienced declines of 2%, 3.4% and 1.5% respectively, resulting in a 2% decrease in the Philadelphia SE Semiconductor index.
Additionally, Apple experienced a 3% decline in shares following a report from TF International Securities analyst suggesting a lower than anticipated demand for its iPhone 16 models.
As of 11:38am, the Dow Jones Industrial Average experienced a modest increase of 64.71 points or 0.16%, making it 41,458.49 points. Conversely, the S&P 500 and Nasdaq Composite registered losses of 13.14 points (0.23%) and 146.18 points (0.83%) to be at 5,612.88 and 17,537.79 respectively.
Intel also had positive news with a 3.4% hike in shares, following a report indicating that it could qualify for up to $3.5 billion in federal grants for semiconductor manufacturing for the US defense department.
Boeing, however, recorded a 1.3% decline in shares after announcing that it was considering temporary furloughs and would halt hiring due to a workers’ strike now in its fourth day. Reuters contributed additional reporting for this news piece.