European stocks reverse losing streak while US sentiment remains fragile

The Irish stock market and its European counterparts rose on Thursday, reversing a three-day streak of losses.

World markets have taken a hit this week as US bond yields reached multiyear highs due to US employment data rattling investor hopes that the Federal Reserve might be finished with tightening monetary policy.

As yields dipped from their Wednesday peak, indexes across Europe were in the green by closing on Thursday.

However, New York’s three key indices were still set to finish in the red as investor sentiment remained fragile, and traders look for more data on whether interest rates will rise next month.

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Dublin

The Iseq All Share rose 0.49 per cent on Thursday, closing at 8,262.4.

It was a day of losses for the Irish banks as AIB fell 0.59 per cent to €4.02, Bank of Ireland was down 1.14 per cent to €9.02, and Permanent TSB lost 2.88 per cent, closing at €2.02.

Paddy Power-parent company Flutter Entertainment added 1.29 per cent to close at €153.40.

Amid a sector wide boost for airlines off the back of the prospect of easing fuel costs, Ryanair gained 2.05 per cent, to €15.95.

Insulation firm Kingspan fell 1.29 per cent to €68.62, while home-builder Cairn was down 0.37 per cent to €1.08, and peer Glenveagh remained flat at €0.96.

Amid ongoing trader speculation regarding a proposed merger with US-based WestRock, shares in packaging company Smurfit Kappa remain volatile, falling 0.16 per cent to €31.31 and reversing gains on Wednesday.

Other upward movers were insurer FBD Holdings, which gained 2.12 per cent to €12.05, and nutrition company Glanbia, which rose 1.68 per cent to €15.15.

London

UK shares reversed a losing streak as US bond yields eased, although challenger bank Metro Bank plunged on reports of an urgent capital raise.

The FTSE 100 climbed 0.53 per cent to close at 7,451.54, while the FTSE Mid-Cap 250 was up 0.61 per cent to 17,599.98.

Metro Bank’s shares tumbled 31.19 per cent and hit a record low on reports the lender was in talks for an urgent capital raise of as much as £600 million (€693.43m). The UK bank confirmed it was evaluating options, including a potential fundraising. Its shares were also briefly suspended in frantic trading.

Cigarette-maker Imperial Brands gained 3.92 per cent, rising to the top of the FTSE 100, after it announced a $1.34 billion (€1.27bn) share-buyback programme and reaffirmed its annual forecast.

Tesco shares rose 3.55 per cent after multiple analysts raised their target price on the retailer a day after its half-year earnings.

Europe

The pan-European STOXX 600 Index gained 0.28 per cent to 441.30. The German DAX lost 0.20 per cent, closing at 15,070.22, while the French CAC fell 0.02 per cent to 6,995.48.

Shares of French firm Alstom plunged by 35 per cent as the train-producer slashed its financial guidance due to delays on UK contracts and a rise in inventories. The group now expects negative free cash flow of €500 million to €750 million this year, a reversal from its earlier prediction that it would be “significantly positive”.

Danish Jewellery retailer Pandora jumped 9.8 per cent to 1½ year highs after it raised its growth targets, saying investments in the brand and store network were paying off.

New York

Wall Street’s three main indices were down by Thursday evening as mixed messages from employment reports this week have left investors scrambling for certainty about upcoming interest rate moves by the Federal Reserve.

Focus will turn to the more comprehensive September non-farm payrolls data due on Friday as traders hope it will signal the labour market is cooling enough to stall another rate increase.

Among stocks Clorox fell as the cleaning products-maker said it expects to post a first-quarter loss, while Lamb Weston Holdings rose after the frozen potato products supplier raised its annual profit and sales forecast.

EV-maker Rivian Automotive saw losses as it announced plans to sell convertible green bonds worth $1.5 billion (€1.42bn) and forecast quarterly revenue to rise in line with estimates, while fellow EV-maker VinFast gained after reporting third-quarter revenue that more than doubled. – Additional reporting from Reuters and Bloomberg