Wednesday saw a boost in global stocks as signs from the US Federal Reserve on the potential direction of this year’s interest rates effectively influenced investors’ decisions.
IRELAND
Euronext Dublin’s ISEQ All Share Index saw a rise of 1.30 per cent, ending the day at 9,633.35. AIB was among the day’s highest climbers, gaining 5.43 per cent to finish at €4.58. This follows the bank reporting a record financial performance in 2023, with its net profit soaring 170 per cent to hit €2.058 billion. Other banking stocks displayed mixed results; Bank of Ireland increased 3.02 per cent to €8.73, while Permanent TSB dropped by 0.63 per cent to €1.59.
Notably, Ireland’s listed housebuilders, Cairn Homes and Glenveagh Properties, both reported gains. Cairn Homes saw an increase of 3.05 per cent to €1.55 and Glenveagh Properties rose by 2.28 per cent to €1.26.
However, it wasn’t all gains. Glanbia, a food company, declined by 1.71 per cent to close at €17.22 and its competitor, Kerry Group, saw a mild decrease of 0.37 per cent, ending the day at €80.90. Kingspan, a building materials firm, climbed by 1.63 per cent to €83.80 and Ryanair’s shares increased by 1.73 per cent to €20.23. Conversely, Smurfit Kappa a packaging colossus, fell by 2.33 per cent to €38.08.
UNITED KINGDOM
British shares also saw an increase on Wednesday, as investors reacted to Jeremy Hunt, the chancellor of the exchequer, presenting the spring budget statement. The FTSE 100, which is heavily reliant on exports, rose by 0.43 per cent to 7,679.31. However, the UK-focused FTSE Mid-Cap 250 Index displayed even greater growth, increasing by 1.05 per cent to close at 19,473.22.
Hunt’s statement indicated that inflation would likely drop below the Bank of England’s 2 per cent target in a few months. Additionally, he predicted a 0.8 per cent growth for the British economy in the following year, despite experiencing a recession in the latter half of 2023.
Shares in British pub chains received a considerable boost, with Marston’s, Fuller Smith & Turner, and J D Wetherspoon all increasing by over 1 per cent. This followed Hunt’s decision to extend the alcohol duty freeze until February 2025.
The medical products and technologies firm, ConvaTec, saw an increase of 6.1 per cent following an increase in its revenue growth predictions for the midterm. Capita, however, a UK-based outsourcing group, experienced a share fall of 22.45 per cent due to a pre-tax loss and increased expenditure stemming from last year’s cyber incident and some corporate departures.
Shareholders of British Airways’ parent company, IAG, saw a 4.79 per cent increase on a JP Morgan rating upgrade, whereas Legal & General fell by 0.86 per cent after it fell short of anticipated operating profits for 2023.
European stocks witnessed a rise on Wednesday, with investors finding reassurance from the US Federal Reserve chairman Jerome Powell’s remarks on inflation and interest rates, all while keeping an eye on the European Central Bank’s policy decision due on Thursday. Notable market movements included a 0.39 per cent rise in the STOXX 600 Index and a 0.28 per cent increase in the French CAC 40 Index. Meanwhile, the German DAX Index saw a minor surge by 0.06 per cent.
German-based firm, Symrise saw a 6.22 per cent rise after exceeding profit expectations due to effective cost management. In contrast, logistics company DHL Group reported a 6.25 per cent decline. This comes after it anticipated 2024 operating profits above pre-pandemic levels, but still fell below market consensus due to diminished global trade.
Swedish eyewear company Synsam experienced a notable 10.76 per cent decrease after a discounted block trade.
In New York, Wall Street took a bullish turn after Mr Powell reassured markets about inflation control and impending rate cuts. Investors’ confidence also grew with news of China’s JD.com shares advancing after reporting a greater than expected fourth quarter revenue and expanding its share repurchase plans.
Cryptocurrency-related businesses, like Coinbase Global and MicroStrategy enjoyed gains following the rebound of Bitcoin, after hitting record highs. Shares in cybersecurity technology firm, CrowdStrike Holdings, leapt following projections of annual results surpassing Wall Street predictions, buoyed by an increase in corporate cybersecurity investment to fend off the escalating cyber threats.
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