Global stocks showed modest movement on Wednesday, with European stocks showing minor increases whilst the principal indices on Wall Street remained steady as traders keenly anticipate the minutes from the recent Federal Reserve meeting on monetary policy in the US.
Industrials and precious metal miners saw significant gains in the session, buoyed by sustained high gold prices. Investors ramped up their gold positions anticipating further cuts to US interest rates this year, escalating the cost of gold bullion to $2,531 (€2,274) per troy ounce on Tuesday.
In Dublin, the Iseq All-Shares Index modestly mirrored its other European counterparts, recording an increase just over 0.3 per cent. Financial entities were the main actors, with AIB rising over 1 per cent to €5.24 per share, while the Bank of Ireland moved up by 0.9 per cent, ending at €10.19 per share. In contrast, property builders had mixed results following Tuesday’s dip, with Cairn Homes up by 0.6 per cent at €1.89 per share, whereas Glenveagh decreased by 0.3 per cent to €1.37. Ryanair and Greencoat Renewables climbed by 0.4 and 2.9 per cent to close at €14.86 and €0.93 per share respectively, with the latter experiencing considerable activity.
In London, the FTSE 100 edged up by 0.1 per cent, whereas the mid-tier FTSE 250 climbed roughly 1 per cent. Industrial metal miners led the way in the benchmark index, gaining 1.6 per cent despite a slight dip in copper prices. Encouraging fund inflows and optimism over US rate cuts spurred the rise in precious metal miners by 1.2 per cent. Glencore, Rio Tinto, and Anglo American all showed increases between 0.75 per cent to 1.5 per cent. Among individual stocks, transport firm Mobico surged 6.2 per cent following a robust 28 per cent leap in their half-yearly profit. Conversely, Watkin Jones plummeted 30 per cent, triggered by missed yearly profit expectations coupled with an investigation into funding options, and was consequently downgraded from a “buy” to a “hold” status by brokers Peel Hunt.
Diageo, the company behind Guinness, witnessed a 2% increase in value, paralleling the growth experienced by European beverage companies, Pernod Ricard and Remy Cointreau. Simultaneously, the leading European Stoxx 50 and comprehensive Stoxx 600 indices noted a minor upward trend on Wednesday.
Demant, a Denmark-based hearing healthcare service provider, enjoyed a 2% rise after receiving an upgrade from Morgan Stanley, taking its rating from “underweight” to “overweight.” Conversely, Alcon, a Swiss ophthalmic product manufacturer reported an underwhelming second-quarter sales increase, leading to a 2.8% stock value decrease and leaving them at the bottom of the Stoxx 600 index.
In New York, the main indices on Wall Street had a relatively quiet day as investors paused in anticipation of the US Federal Reserve’s recent monetary policy meeting minutes, expected to be released post the closing of the European markets. At the close of trading in Dublin, the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average showed little to no movement.
Target, one of Wednesday’s significant traders, saw a 13% hike in its stock value after the company increased its yearly earnings forecast and reported optimistic quarterly comparable sales, catalysed by the presence of budget-friendly groceries and essentials leading more Americans to shop.
On the other hand, US shares of JD.com, a Chinese e-commerce giant, experienced a 7% drop after reports emerged that Walmart, its most significant shareholder, had sold its entire stake in the company. However, this did result in Walmart’s shares recording a near 1% increase.
Macy’s downgraded its yearly gross sales projection due to a continual dip in US consumer spending, resulting in a 8% drop in its shares. The positive outlier was Keysight Technologies, soaring upwards by 11.8% after the electronic equipment manufacturer exceeded third-quarter revenue and profit expectations. Additional information was provided by Bloomberg and Reuters.