On Monday, share values escalated as investors turned to the Jackson Hole economic symposium in the US for hints regarding interest rate modifications and policy actions.
In Dublin, shares performed well on the whole despite a lack of significant news from Irish corporations. The food company, Glanbia, experienced another challenging market day, with its stock value decreasing by 3.88% to hit €15.62. The Kilkenny-based firm in its recent report disclosed a decrease in net profit from €130 ($193 million) to €120 million ($143 million) for January to June period, as compared to the same timeframe in 2023. Glanbia’s shares have been mostly dropping since this announcement, with dealers commenting that despite robust trading volumes, sellers outnumbered buyers.
Meanwhile, the stock value of other companies experienced a boost with Dalata, the hotel operator, closing with a slight increase of nearly 1% at €4.29. AIB and Bank of Ireland also saw advancements of 1.84% to €5.265 and 1.04% to €10.23 respectively.
Across the pond, the primary index FTSE100 in London reached a monthly high buoyed by the performance of mining and housebuilding sectors. Following its announcement to finalise the acquisition of its competitor, Redrow, later this week, Barratt, the housebuilder, saw its shares rise by 3.4% to 554 pence sterling.
Online trading platform Plus500 also gained after it revised its profit outlook and increased dividends following a record surge in retail customers in the first half of 2024. Consequently, the company’s shares ended 4.11% higher at 2,532p.
Nevertheless, a rough session for the defence segment led to a trim in BAE Systems’ shares by 0.8% to 1,339p.
In a turbulent trading day, shares for the aircraft engine manufacturer Rolls-Royce took a nosedive, hitting a low of 489.2p, but managed to regain some losses to end the day at 0.2 per cent down, closing at 500p.
On the European front, stocks travelled north on Monday, continuing the bull run from the past week. The Stoxx Europe 600 Index appreciated by 0.6 per cent by the close, logging its best weekly performance since May. Standout sectors included basic resources and retail, while healthcare performed poorly and defence stocks were pummelled as Germany hinted at a potential cut in Ukrainian aid due to budget constraints.
Swedish telecommunications equipment firm Ericsson AB moved upwards as it clinched a $1 billion contract to divest its US call-routing unit Iconectiv to Koch’s private investment wing. Following a global rout earlier this month, Europe’s standard index is on recovery track. Rising technical indicators signal investors shifting back to a risk-taking approach.
Moving to US markets, stocks were favoured as central bank representatives began assembling in Jackson Hole Wyoming for their annual economic gathering. Jerome Powell, the Federal Reserve chief, is scheduled to deliver a talk on Friday, with investors hopeful for a hint of a potential interest rate slash in the coming month. Investors were further buoyed by the possibility of extending Wall Street’s current bullish streak to eight days.
The S&P 500 increased to 5,575 during New York’s afternoon trade. Advanced Micro Devices inked a deal to acquire server manufacturer ZT Systems for a whopping $4.9 billion. Beauty company Estée Lauder had an unpleasant sales prediction, yet saw its shares climb 1 per cent by 11:15am in New York. CEO Fabrizio Freda is set to step down in June 2025, concluding a 15 year successful stint that morphed the firm into a worldwide cosmetics powerhouse, despite facing hurdles in recent years.
Other large retail players poised to disclose their reports this week include Lowe’s, Target, and TJX.
Extra coverage: Bloomberg, Reuters