European stocks hit new records
European stocks rose for a fifth straight session on Thursday to hit record highs as investors took comfort in the US Federal Reserve signaling it was in no rush to raise interest rates, while the Bank of England left its benchmark rate at an all-time low.
The Iseq fell 0.7% as several of its largest stocks posted declines. Cement CRH, the largest component of the index, fell 0.65% to € 42.83, while the food group Kerry ended down 1.2% to € 115.10.
Banks were also in the red, with AIB down 2% to € 2.35 and Bank of Ireland fell almost 0.7% to € 5.15. Paddy Power Owner Flutter Entertainment also fell, ending down 2.6% to € 147.60.
Ryanair was among the winners, however, with the airline rising 0.6% to € 17.63, while the Packing Group Smurfit Kappa added 0.1 percent to end at € 45.52.
The FTSE 100 rallied as the pound collapsed following the Bank of England’s decision to defy the markets by leaving rates unchanged, while heavyweight energy stocks tracked crude prices at the rise. The British pound weakened 1.33% after the rate decision, boosting companies generating dollar profits.
The export-oriented FTSE 100 index, which was flat before the Bank’s statement, ended up 0.5%. Oil majors PA and Royal Dutch Shell rose 1.2 percent and 1.7 percent, while the telecommunications company BT Group added 11 percent after confirming its outlook for this year and next.
Banks fell 3.3%, hitting a three-week low after the central bank’s decision.
The FTSE 250 mid-cap index rose 1.6% to its best session in more than three months, driven by positive earnings from engineering firm IMI and electricity retailer Currys.
Sainsbury’s fell 2.4% to the bottom of the blue chip index as uncertainty around supply chains outweighed a 23% increase in first half profits.
The pan-European Stoxx 600 closed 0.4% higher after spending most of the day in positive territory after the Fed, as expected, announced it would start cutting its monthly bond purchases in November with plan to end it next year.
Gains on the Stoxx 600 were led by a 2.3% jump in real estate stocks after a takeover offer from the German real estate company Alstria Reit Office from the Canadian investment firm Brookfield.
Drug manufacturer rock gained 0.5% after buying its nearly one-third voting stake from rival Novartis for $ 20.7 billion. Novartis was up 2.4 percent.
Germany’s Dax blue chip index rose 0.4% to an all-time high after strong earnings from Deutsche post resulted in a 3 percent increase in its stock.
from France Societe Generale and Germany Commercial bank rose 1 percent and 1.5 percent, respectively, after banks posted optimistic quarterly profits.
The S&P 500 and the Nasdaq hit record highs early in the session on stellar earnings reports.
The Dow Jones slipped from a historic closing high on Wednesday, dragged down by the big banks JPMorgan Chase and Goldman Sachs, which fell 1.7% and 2.6% despite the steepening of the yield curve.
Actions of Qualcomm jumped 11.4% after the chipmaker forecast better-than-expected earnings and revenue for its current quarter. His rival Nvidia also climbed 9.9 percent.
Electronic arts and compete Take-Two interactive software gained 2.9% and 2.3% respectively, after upping their adjusted sales forecast for 2021 due to a strong gaming boom.
You’re here added 1.5% to reach new highs.
Merck rose 2.5% after the UK became the first country in the world to approve its Covid-19 antiviral oral pill developed jointly with Ridgeback Biotherapeutics. Moderna fell 18.4% after the vaccine maker lowered its full-year sales forecast for its Covid-19 vaccine. – Additional reports: Reuters