European stocks rise with banks proving a safe bet
Stocks across Europe largely rose on Monday, bolstered by investor confidence in the banking sectors and strong returns by drinks and luxury giants. Close to home, banking also proved a safe investment as Dublin’s stock market saw positive returns from financial groups, manufacturers and construction companies alike. Across the Atlantic, however, many traders were hesitant to begin the week with a strong start as key inflation data looms later in the week, seen to be pivotal in shaping the Federal Reserve’s economic forecasts and the trajectory of interest rates. DUBLIN The Iseq All-Share index rose 1.60 per cent to start the week in the green, closing at 14,123.87 following positive results in the banking and manufacturing sectors. Strong gains by the building materials and insulation manufacturer Kingspan, whose share price rose 2.41 per cent to €101.80 by close of business, were among the day’s top results. Elsewhere, home builder Glenveagh Properties was up 1.77 per cent to close at €2.30 a share, while Cairn Homes grew by 0.03 per cent to close at €2.64. Food technology company Kerry Group also saw strong returns, up 1.45 per cent at €88.70 a share. Both major banks traded on the index saw their share price increase. Bank of Ireland was up 1.79 per cent to close at €18.46, while rival AIB lagged slightly behind, up 1.68 per cent to finish at €10.86. Agri-services group Origin Enterprises and healthcare company Uniphar also saw their share prices increase, 3.95 per cent and 3.26 per cent to €3.95 and €3.97 a share, respectively. Insurer FBD Holdings saw its share price drop, down 1.84 per cent to €18.65 by the end of the trading day. LONDON The London stock market saw stocks largely rise across the board, with its blue-chip FTSE 100 index increasing 0.99 per cent and the mid-cap FTSE 250 up 0.47 per cent as well. Investors put their trust in British banks, with Lloyds Banking Group rising 2.36 per cent and Barclays not far behind, up 1.85 per cent by close. Meanwhile, Lion Finance also jumped 2.75 per cent. Guinness-brewer Diageo, who also owns Smirnoff Vodka and Don Julio tequila, ended the day up 2.14 per cent on Friday’s closing price. Telecommunications group Vodafone, however, dipped 1.39 per cent by close – as did publishing and exhibitions group Informa, whose share price fell 2.41 per cent. EUROPE Elsewhere in Europe, investors in banking portfolios and luxury goods suppliers helped the continent’s two major indices also close the trading day with growth. The Stoxx 600 index was up 0.65 per cent, while the Stoxx 50 followed, up 0.45. Spain’s Santander bank increased 1.80 per cent, while German Deutsche Telekom rose 1.13 per cent. Elsewhere, France’s luxury good giant Hermes International soared 2.10 per cent by close. Car manufacturer Mercedes Benz Group, however, saw its share price dip 0.82 per cent. NEW YORK Early trades on Wall Street pointed to a slightly less positive trend compared with global indices. Some stocks fluctuated near their all-time highs while others faltered as traders looked ahead to the start of the earnings season. Before midday New York time, the Dow Jones Industrial Average was up 0.43 per cent, meanwhile the S&P saw little change and the Nasdaq fell some 0.60 per cent. Most companies in the S&P 500 rose despite renewed losses in chipmakers and looming inflation data to be released later this week that will be key in shaping the Federal Reserve’s outlook. – Additional reporting: Bloomberg.