European stocks kicked off the first trading session of 2025 on a high note on Thursday, buoyed by a strong performance in the energy sector, while global investors analysed fresh economic data from the US.
Dublin
The Iseq got off to a sluggish start to 2025, declining 0.1 per cent on the first trading day of the year. Ryanair rose 0.8 per cent to €19.22, but several key stocks failed to gain any traction.
Bank of Ireland fell 2.3 per cent to €8.61, while AIB finished down 0.4 per cent at €5.31. Building materials group Kingspan ended 0.5 per cent lower at €70.10 and food group Kerry slipped by the same percentage, closing at €92.75.
Glenveagh Properties was among the climbers, rising 2.25 per cent to €1.64, while Glanbia added 1.4 per cent to €13.52.
Will 2025 deliver breakthrough on planning so Ireland can tap its wind energy ‘gold mine’?
Remote working: ‘We see younger workers in particular saying they don’t want to come back because of the expense involved’
Silicon Valley seeks an audience at the court of Trump
With a glut of electric cars on sale for under €30,000, will Irish people make the switch?
London
The UK’s FTSE 100 advanced 1.1 per cent to its highest level in more than two weeks, boosted by gains in commodity-linked stocks. The mid-cap FTSE 250 was near flat after touching a two-week high earlier in the session.
Precious metals miners rose 4.6 per cent, leading gains among sectors, as gold hit a two-week high on safe-haven demand and lower US Treasury yields, with investor focus on the US interest rate outlook and policies under the new incoming Donald Trump administration.
Energy stocks gained 2.2 per cent, and were the biggest boosts. Oil heavyweights such as BP and Shell rose 2.6 per cent and 2.1 per cent respectively, as crude prices were buoyed by expectations of more stimulus for China’s slowing economy.
On the flip side, home builders led sectoral losses with a 0.9 per cent fall.
Data-wise, a survey showed British factory activity shrank at the fastest pace in 11 months in December, as manufacturers cut staffing levels in response to higher taxes and weak foreign demand.
Europe
The pan-European Stoxx 600 index rose 0.6 per cent, reversing modest losses earlier in the session as trading volumes were light with investors still returning from their new year holidays.
Europe’s oil and gas sector jumped 2.3 per cent as crude prices surged 2 per cent following a pledge by China’s President Xi Jinping to promote growth. China is the world’s top crude importer.
An economic survey showed manufacturers in the euro zone ended last year on a sour note, with factory activity declining at a faster rate, offering scant signals of an imminent recovery.
On the day, Vestas Wind Systems rose 6.7 per cent after the Danish wind turbine maker said it received new orders in Italy.
US
Wall Street’s main indexes edged higher in the volatile opening hours of its first trading session of 2025 as investors pinned their hopes on a fresh political landscape and more interest rate cuts, while Tesla slid after a dour deliveries report.
Tesla dropped 5.2 per cent and touched a near one-month low after reporting its first fall in annual deliveries, missing chief executive Elon Musk’s promise of slight growth in 2024 as incentives failed to stem a decline in demand for its ageing line-up of electric vehicles.
Apple lost 2.2 per cent. The iPhone maker offered rare discounts of up to $68.50 on its latest iPhone models in China. Crypto stocks such as MicroStrategy and MARA Holdings rose 4.2 per cent each, tracking higher bitcoin prices.
On the data front, jobless claims unexpectedly fell last week, consistent with a healthy labour market. Separately, a final estimate of S&P Global’s manufacturing survey showed activity stood at 49.4 in December, compared with a previous estimate of 48.3. – Additional reporting: Reuters
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
