Markets

Markets retain their feelgood vibe post-Trump victory

Interest rate cuts in both the US and Britain are the focus for a session where only the FTSE 100 dipped

Markets were generally in good humour even ahead of the latest cut in US interest rates. Photograph: Michael Santiago/Getty Images
Markets were generally in good humour even ahead of the latest cut in US interest rates. Photograph: Michael Santiago/Getty Images
Fiona Keeley
Thu Nov 07 2024 - 19:44

Markets generally advanced on Thursday, buoyed by Wall Street’s enthusiastic reaction to the Trump victory in the presidential election though London’s FTSE 100 found itself the odd one out. Rate cuts in both the US and Britain also helped sentiment though there was caution attached to both.

Dublin

The Iseq index rose by 0.98 per cent a day when the two big banks moved in different directions.

Bank of Ireland was the most traded stock on the market, with over 41 million shares changing hands as it added 2.08 per cent to €8.75, recovering some of Wednesday’s losses. AIB, by contrast, was 0.3 per cent weaker at €5.36.

Elsewhere, building materials group Kingspan was among the best performers of the day, rising 4.55 per cent to €79.25 while, among the housebuilders. Cairn Homes was 2.26 per cent stronger on €2.26 and Glenveagh Properties ended the session 1.37 per cent higher on €1.63 a share.

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There were contrasting fortunes in the food sector where Kerry Group fell 2.59 per cent to €88.35, the worst performer in the session outside the minnows, while Glanbia rose by 0.42 per cent to €14.41 a day after its trading statement signalling significant change. Ryanair advanced 2.1 per cent to €19.01.

London

The UK’s FTSE 100 slipped after the Bank of England cut interest rates as expected even as it projected higher inflation and economic growth following the new government’s first budget.

The blue-chip index closed down 0.3 per cent, the only stock index among major European benchmarks that ended in the red. The FTSE 250 midcap index rose 0.9 per cent, helped by a 13 per cent jump in electronics products distributor RS Group following its first-half results.

Broadcaster ITV lost 12.9 per cent after posting a worse than expected fall in revenue in the nine months to September 30th while BT fell 3.6 per cent after Britain’s biggest broadband and mobile company reduced its full-year revenue forecast from broadly flat to down 1-2 per cent.

Rolls-Royce dropped about 4% after it stuck to guidance for annual profit growth of at least 30 per cent this year. John Wood Group plummeted 60 per cent following an 8 per cent decline in its third-quarter order book.

Europe

European stocks regained ground, boosted by technology and resources shares. The pan-European STOXX 600 closed 0.7 per cent higher, powered by a 2.2 per cent bounce in the tech sector, recouping losses from the previous session. Autos also added 2.2 per cent after a more than 2 per cent decline on Wednesday.

Europe’s Stoxx 600 gained as much as 1.9% in the previous session, tracking a surge on Wall Street after Donald Trump recaptured the US presidency, although the index closed lower as investors assessed the likelihood of tariffs.

Among movers, ArcelorMittal gained 6.5 per cent after the world’s second-largest steelmaker reported third-quarter core profit above market expectations.

Italy’s third-largest lender Banco BPM climbed 9 per cent on plans to launch a bid for full control of asset manager Anima Holding in a deal worth up to €1.6 billion. Shares of Anima jumped 11.1%. Dutch fintech company Adyen slipped 3 per cent after reporting third-quarter processed volume below market expectations,

Daimler Truck gained 3.1 per cent after the truck maker reported a marginally better than expected third-quarter core profit.

The German benchmark index was up 1.7 per cent after the country’s ruling Coalition collapsed as chancellor Olaf Scholz sacked his finance minister and paved the way for a snap election, triggering political chaos in Europe’s largest economy.

Arms group Rheinmetall shares rose 9 per cent, leading a rally in aerospace and defence stocks, on bets the election of Trump and the sacking of Germany’s fiscally conservative finance minister could boost defence spending.

New York

Wall Street’s main indices added to their gains on Thursday in the run-up to the Federal Reserve’s interest-rate decision, extending a sharp rally sparked by Donald Trump’s stunning comeback as US president for a second time.

Traders have about fully priced in a 0.25 per cent rate cut, but will keep a close watch on the central bank’s commentary for clues on the future path of monetary easing.

Investor expectations that Trump would lower corporate taxes and loosen regulations had lifted all three major indexes in the previous session. All the three major indices were trading near record highs, but further advances will depend on the central bank’s rate-cut outlook.

Tesla, which surged 13 per cent on Wednesday in the wake of Trump’s triumph, added a further 3.2 per cent on Thursday to advance to a market cap of $955.83. Chief executive Elon Musk was an enthusiastic and high profile backer of Mr Trump’s campaign. – Additional reporting: Agencies

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