European shares rose nearly 1 per cent on Thursday, with luxury stocks boosted by Richemont’s upbeat earnings update and semiconductor firms making gains after TSMC reported record quarterly profit.
France’s benchmark index, which includes major luxury stocks, rose to a near three-month high, outperforming other exchanges.
Dublin
The Iseq fell almost 0.4 per cent in a subdued session, failing to replicate the European gains driven by luxury and chipmaker stocks.
The Dublin market was dragged lower by Ryanair, which fell 0.9 per cent to €18.06, while financial stocks were also in the red, with AIB down 1 per cent at €5.44 and Bank of Ireland closing down 0.6 per cent at €9.03.
Good feedback, bad feedback: companies need to learn the difference if they want staff to learn
Programme for government: Five of the most notable new economic promises
Leap Sit Stand desk review: Counteract your sedentary work lifestyle at the touch of a button
Workout bench makes it possible to do reformer-Pilates exercises in your own home
But it was another good day for food companies, with Glanbia advancing 0.8 per cent to €14.06 and Kerry adding 1.4 per cent to finish at €92.45. Kingspan was also in the green, with the insulation-maker up 0.75 per cent at €67.50.
London
The blue-chip FTSE 100 closed at a near eight-month high on Thursday, rising 1.1 per cent as investors cheered upbeat earnings and signs of cooling inflation that could keep major central banks on track for further interest rate cuts. The domestically focused FTSE 250 midcap index climbed 1 per cent to a 10-day closing high.
Burberry jumped 4.1 per cent after Richemont fuelled hopes of a revival for the luxury goods industry with end-of-year sales that exceeded expectations, lifting shares across the sector. Luxury retailer Watches of Switzerland Group climbed 8.1 per cent.
Deliveroo rose 6.6 per cent after the meal delivery company said it had “robust” growth in its final quarter and added its full-year earnings would be towards the top of its forecast.
Trustpilot jumped 16.6 per cent after the global review platform forecast full-year adjusted core profit ahead of market consensus.
Europe
The pan-European Stoxx 600 rose 0.9 per cent to its highest since mid-December.
Richemont shares surged 16.3 per cent after the owner of the Cartier jewellery brand beat quarterly sales expectations. A gauge of European luxury firms advanced 6.7 per cent, logging its best day in nearly four months. LVMH shares jumped 9.1 per cent, Dior rose 8.6 per cent, Kering gained 4.6 per cent and Hermes was up 4.9 per cent.
The tech index, which houses the bulk of European chipmakers, advanced 1.9 per cent after TSMC, the world’s largest contract chipmaker, logged a record quarterly profit and said it expects hefty first-quarter revenue growth.
Among other notable stock moves, Zalando rose 8.6 per cent after Europe’s biggest online retailer said it expected profit in 2024 to beat its own forecasts. Orion added 7 per cent after the Finnish drugmaker hiked its 2024 revenue and operating profit outlook.
On the macro front, the European Central Bank needed to cut interest rates cautiously and gradually but further policy easing was likely coming given weakening price pressures, according to the accounts of its December 11th-12th meeting.
US
Wall Street’s main indexes took a pause early on Thursday following strong gains in the previous session, while investors assessed data to gauge the outlook for interest rate cuts this year.
Morgan Stanley added 1.6 per cent after the lender said earnings increased, fuelled by a wave of deal making in the fourth quarter. Bank of America gave up early gains and slipped in choppy early trading.
Weighing on the blue-chip Dow was UnitedHealth, which lost 2.8 per cent after the insurer reported fourth-quarter revenue below estimates.
US-listed shares of Taiwan Semiconductor Manufacturing Co rose 5.8 per cent after the company posted a record quarterly profit on surging demand for chips used in artificial intelligence processing. Other chip stocks Nvidia rose 1 per cent and Broadcom added 3.7 per cent.
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
