Markets

Markets end on a positive note ahead of Trump return

FTSE 100 hits new highs as other indices close out a strong week for equities

Wall Street’s main indices rose on Friday, with the S&P 500 and the Dow on track to log their biggest weekly gains since November. Photograph: David Dee Delgado/Getty Images
Wall Street’s main indices rose on Friday, with the S&P 500 and the Dow on track to log their biggest weekly gains since November. Photograph: David Dee Delgado/Getty Images
Fiona Keeley
Fri Jan 17 2025 - 18:59

Markets ended the week on a positive note, with better-than-expected earnings from big banks and signs that inflation is cooling prompting risk-taking on Wall Street this week.

Dublin

The overall Iseq index rose 0.92 per cent on a day when hotels group Dalata stood out as the only index constituent ending the session in the red. And even then it was down only 0.1 per cent at €4.76.

Among the winners, Kingspan rose 2 per cent to €68.95 while Ryanair was up 0.89 per cent to €18.21. Ingredients group Kerry finished 0.59 per cent ahead on €93 while Glanbia was 0.5 per cent stronger on €14.13.

Among the banks, AIB firmed 0.64 per cent to €5.47 while Bank of Ireland did even better, adding 0.8 per cent to €9.10. PTSB had the strongest advance, rising 1.08 per cent to €1.40.

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Housebuilders Cairn Homes and Glenveagh fared equally adding 0.24 per cent to €2.08 and 0.27 to €1.51 respectively.

London

The FTSE 100 rose 1.4 per cent to hit record highs, logging its fourth straight weekly gain. It was supported by a weaker pound after much softer than expected retail sales data boosted expectations of an interest-rate cut next month.

Oil giant Shell rose 1.2 per cent, while consumer goods company Unilever added 1.6 per cent. Among miners, Glencore gained 2.7 per cent, while Rio Tinto’s London-listed shares were up 2.2 per cent. Glencore approached Rio Tinto late last year about combining the two big copper producers, but the discussions are no longer active, a source told Reuters.

Smiths Group added 5.5 per cent after US activist investor Engine Capital, which owns a roughly 2 per cent stake in the engineering firm, called for the British company to find a buyer for the business or break it up.

Europe

The Stoxx 600 rose by 0.7 per cent, bringing its gain for the week to over 2 per cent, its fourth consecutive week of advance which is its longest winning streak since August 26th last year.

Most Stoxx sub-sectors were trading higher, with rate-sensitive sectors, like construction and industrials boosting the index, rising 1.6 per cent and 1.5 per cent, respectively.

The Cac 40 ended 1.03 per cent higher for the day and the Dax index was up 1.17 per cent.

Euro zone benchmark German bond yields were on track for their first weekly drop since early December 2024. Saab lost 5.3 per cent after the Swedish defence equipment maker reported fourth quarter results.

New York

Wall Street’s main indices rose, with the S&P 500 and the Dow on track to log their biggest weekly gains since November, as investors anticipate a wave of policy changes under the incoming Trump administration.

The Dow Jones Industrial Average rose 1.05 per cent, the S&P 500 was up 1.17 per cent and the Nasdaq Composite gained 1.58 per cent.

Chipmaker Nvidia gained 3.4 per cent and Broadcom rose 3 per cent after Barclays raised its price targets on the stocks, sending the chip index up 2.6 per cent. Intel jumped 8.2 per cent on speculation of a takeover.

Social media firms had a mixed day with Meta gaining 0.6 per cent and Snap shedding 1.6 per cent after the supreme court ruled against TikTok’s challenge to a law that would force the app’s sale or a ban in the United States.

President-elect Donald Trump returns to the White House on Monday and investors will be on edge for any insights into his plans on tax cuts, tariffs, regulations and immigration at his inauguration speech, which analysts anticipate could boost the economy. – Additional reporting: agencies

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