European shares hold steady following ECB news

Stocks across Europe held their nerve following the news of the European Central Bank (ECB) holding its rates for the first time in six months and the early resignation announcement of ECB president Christine Lagarde.

Across the Atlantic, however, investors are growing more cautious of buying shares in technology companies holding off on full AI-integration. In London, household brands suffered notable losses after worse-than-expected financial forecasts.

DUBLIN

The Iseq All-Share index dropped 0.19 per cent to 14,322.04 by the close following a pullback of shares in the banking sector with marginal advances in other sectors failing to offset it.

AIB and Bank of Ireland saw their stock come back 0.93 and 0.92 per cent to €11.14 and €18.85 a share respectively after a strong advance on Wednesday. PTSB fell 1.01 per cent to €2.95. PTSB has been engaged in High Court action throughout this week on the bank’s proposed €1.6 billion takeover by Austrian lender Bawag.

Ryanair recovered from a 2 per cent-plus dip on Wednesday to add 1.19 per cent to €22.97 a share, while housebuilders CairnHomes and Glenveagh Properties jumped 1.09 per cent and 1.44 per cent, respectively, to €2.78 and €2.46.

LONDON

The London Stock Exchange saw slight gains, although notable falls in some prominent listed companies prevented it pulling further ahead. The blue-chip FTSE 100 ended the day 0.26 per cent up, while the mid-market FTSE 250 rose 0.14 per cent.

Consumer healthcare company Haleon saw its share price fall 15.05 per cent as it cut its sales outlook far below market expectations, pointing to a weak demand for cold medicines this flu season. Elsewhere, Lloyds Bank fell 5.04 per cent after published performance targets left investors wanting more, dragging financials down with it.

Shell gained 2.1 per cent, despite falling oil prices, as it reported better-than-expected third-quarter results and increased the size of quarterly share buy-backs. Adjusted earnings rose to $10.8 billion from $5.43 billion a year ago.

Diageo, brewer of Guinness, was down 2.07 per cent and C&C, which updated markets on Wednesday, fell 2.84 per cent by close of markets. Elsewhere, pharmaceutical company AstraZeneca rose 2.26 per cent.

EUROPE

Shares across the Continent held their nerve, and even rose moderately despite the news of upcoming change at the ECB.

The blue-chip Euro Stoxx 50 grew 0.72 per cent and the mid-cap Stoxx 600 index did slightly better, rising 0.77 per cent. German companies recorded notable share price increases with sports brand Adidas up 5.76 per cent, lender Deutsche Bank rising 3.78 per cent and the car brand Mercedes Benz Group jumping 2.35 per cent.

French motor rival Renault did even better, adding 6.91 per cent by markets close.

Spanish bank Santander dropped 0.49 per cent, as it edged back to its typical price point following a stark drop in the aftermath of Brazil’s re-election of left-wing presidential incumbent Lula da Silva.

NEW YORK

Early trades on Wall Street were hit by disappointing earning results from two technology heavyweights, furthering the unease felt by many investors in New York that the artificial intelligence (AI) boom will not amount to return on capital.

Before midday New York time, the Nasdaq 100 index had fallen 1.3 per cent, while the Dow Jones Industrial Average had dipped around 0.4 per cent and the S&P 500 index was 0.35 per cent weaker.

A day after the Federal Reserve kept interest rates steady, more data showed the US economy had expanded in the third quarter of the year at its fastest pace yet.

But falls in technology shares – Google’s parent company Alphabet and Samsung Electronics – dragged indices down as traders grow more selective in the digital sector, choosing to invest more heavily in AI-powered companies. – Additional reporting: Reuters and Bloomberg.