Global markets climbed higher on Wednesday after the United States signed a trade deal with Japan amid reports a deal with Europe could be close.
Dublin
Euronext Dublin finished the day up 1.3 per cent, lifted by Cavan-based insulation specialist Kingspan, which surged 3.6 per cent.
There was strength across the board on the index, which fed through to the banks as AIB and Bank of Ireland finished the day up 1 per cent and 2 per cent respectively.
Elsewhere, Ryanair continued its recent run as it climbed 1.5 per cent. Davy increased its price target for the airline from €24 to €27 and reiterated its “outperform” prediction on its rating.
RM Block
“The market overall did a little bit better on the day,” noted a trader. “The tariff deal with Japan set the market up well for the morning and it just carried through into the day.”
London
The FTSE 100 index closed up 0.4 per cent which was a record closing peak, after earlier hitting an all-time high.
The FTSE 250 closed up 0.4 per cent, and the AIM All-Share closed up 0.5 per cent.
Car makers such as Toyota climbed 14 per cent, and Honda jumped 11 per cent. Mitsubishi rose a more modest 3.6 per cent.
On the FTSE 100, Informa rose 5.3 per cent. It raised its full-year outlook and added to its share buyback after reporting 20 per cent growth in half-year sales and adjusted profit.
Europe
The pan-European Stoxx 600 index rose 1.01 per cent, while Europe’s broad FTSEurofirst 300 index rose 1.01 per cent.
The Cac 40 in Paris advanced 1.5 per cent, while the Dax 40 in Frankfurt gained 0.8 per cent.
Euro zone government bond yields were mixed, as investors weigh what Japan’s trade deal with Washington means for hopes of further agreements.
Euro area borrowing costs had fallen over the past two sessions as investor focus shifted to the deflationary fallout from potential U.S. trade duty increases and a strengthening euro.
US President Donald Trump struck a deal with Japan that spares Tokyo from punishing levies in exchange for a $550 billion (€468 billion) package of US-bound investment and loans.
Germany’s 10-year government bond yield, the euro area’s benchmark, rose 1.5 basis points to 2.603 per cent, after dropping more than 10 basis points in the last two sessions.
Germany’s two-year government bond yield – more sensitive to expectations for European Central Bank policy rates – was little changed at 1.798 per cent. The gap between German 10-year and 2-year yields rose 1.5 basis points to 80.5 basis points.
New York
Wall Street’s main indexes moved higher after it was reported that the US and the European Union were closing in on a 15 per cent tariff deal.
The Dow Jones Industrial Average rose 0.36 per cent; the S&P 500 rose 0.27 per cent; while the Nasdaq Composite rose 0.35 per cent.
Tesla and Alphabet are set to report after the bell on Wednesday. With AI optimism running high and valuations stretched, expectations for these tech giants are sky-high, leaving little margin for disappointment.
In earnings-focused moves, GE Vernova’s shares climbed 13.7 per cent to an all-time high, as the power equipment maker raised its current-year revenue and free cash flow forecasts after beating Wall Street estimates for second-quarter profit.
Texas Instruments tumbled 12.7 per cent after its quarterly profit forecast failed to impress investors, as it pointed to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty.
The earnings also weighed on its peer analog chipmakers, with NXP Semiconductors, Analog Devices and ON Semiconductor falling between 3.5 per cent and 5.6 per cent.
Toymaker Hasbro slipped 2.4 per cent even after raising its annual revenue forecast.
A 1.7 per cent drop in AT&T kept the communications sector in the red, with all other sectors in positive territory. The company’s stock dropped despite beating quarterly profit estimates. – Additional reporting: Agencies
