European shares pulled back from record highs and ended flat on Friday, weighed down by declines in the telecom and energy sectors, while rising bond yields further added downward pressure.
Dublin
The Iseq ended the session up 0.4 per cent, as gains for the banks and Kingspan offset a decline for Ryanair.
The airline slipped 0.7 per cent to €19.73, but insulation-maker Kingspan rose by a similar percentage, closing at €69.80. AIB advanced 2.1 per cent to €5.77, while Bank of Ireland ended 0.9 per cent higher at €9.75.
Kerry Group rose marginally to €95.70, while Glanbia added 0.7 per cent to finish at €14.12.
London
Britain’s FTSE 100 fell 0.7 per cent, as a jump in sterling hurt export-oriented firms, while Burberry soared after a strong US holiday season helped the luxury firm beat quarterly sales expectations. The FTSE 250 mid-cap index ended flat.
Sterling hit a two-week high against the dollar on Friday as a lack of concrete tariff policies during Donald Trump’s first week in office hurt the dollar, and in turn weighed on shares of global companies such as Shell and HSBC .
UK-listed global miners such as Antofagasta, Glencore and Rio Tinto climbed as copper prices jumped to their highest in more than two months on hopes of a US trade deal with China.
Burberry shares jumped about 10 per cent after it reported a smaller-than-expected 4 per cent drop in quarterly comparable store sales and said it was now more likely to record a profit over its financial year.
Harry Potter publisher Bloomsbury rose 2.8 per cent after renewing its supply agreement with Amazon.
Diageo gained 4.3 per cent after a report that the world’s top spirits maker is exploring a potential spin-off or sale of beer brand Guinness and is reviewing its stake in LVMH’s drinks division.
Europe
The pan-European Stoxx 600 index lost steam, closing unchanged at 530.07 points.
Despite this dip, the benchmark index rose 1.3 per cent over the week, marking its fifth consecutive weekly gain, its longest winning streak in nearly 10 months. Anticipation of next week’s European Central Bank policy decision also contributed to the weekly performance. With the rate cut already factored into the market, investors will be closely watching policymakers’ commentary on the future direction of interest rates for 2025.
The telecommunications sector lost 2.8 per cent on Friday, led by a 12.7 per cent decline in Ericsson as the Swedish telecom equipment maker missed fourth-quarter profit estimates. The energy sector also lost 1 per cent in tandem with oil prices.
Luxury stocks advanced after British luxury brand Burberry reported a smaller-than-expected drop in quarterly comparable store sales. Hugo Boss added 3.9 per cent, Moncler jumped 3 per cent and Gucci owner Kering climbed 4.5 per cent.
MTU Aero dropped 6.5 per cent after the German engine manufacturer said Katja Garcia Vila would replace Peter Kameritsch as the next CFO.
US
Wall Street’s main indexes struggled for direction on Friday, as investors avoided big bets and assessed fresh data to gauge the health of the economy, while Boeing dipped after warning of a bigger-than-expected quarterly loss.
An S&P Global survey showed that business activity slowed to a ninth-month low in January amid rising price pressures, but firms reported higher hiring, supporting the Federal Reserve’s cautious approach to monetary policy this year.
On the earnings front, American Express reported a 12 per cent jump in fourth-quarter profit. Its shares, however, fell 3.1 per cent and weighed on the blue-chip Dow.
Boeing lost 0.3 per cent after the planemaker warned of a fourth-quarter loss of about $4 billion. – 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
