European shares near record high as lower oil prices boost sentiment

European shares edged higher on Tuesday, hovering near a record high as falling oil prices and easing ​concerns over a possible military escalation between the US-Israeli coalition and Iran boosted risk appetite.

The pan-European Stoxx 600 index gained 0.3 per cent to 658.32, within two points of an all-time highest close, reached in August.

DUBLIN

The Iseq All-Share index rose 1 per cent to 15,025.86.

Kingspan rose 1.3 per cent to €96.70 as the group outlined ambitious financial targets out to 2030, including a goal to more than double trading profits to €2 billion.

Banking stocks were among the main gainers, tracking the performance of the broader sector across Europe. AIB and Bank of Ireland jumped 1.9 per cent to €11.58 and €19.60, respectively, as European Central Bank (ECB) chief economist Philip Lane said it would be prudent for the institution to raise official interest rates again in December.

Housebuilders, however, were out of sorts, with Cairn Homes falling 0.5 per cent to €2.78 and Glenveagh Properties dropping 1.4 per cent to €2.41.

Ryanair edged 0.7 per cent higher to €26.61 amid easing oil prices.

Irish Continental Group was also in focus as the High Court approved its €8-a-share takeover by management led by chief executive Eamonn Rothwell. It dipped 0.3 per cent to €7.96.

LONDON

The FTSE 100 has closed 0.3 per cent lower in London as early advances evaporated in the wake of another strong US inflation print.

Oil majors BP and Shell fell 0.8 per cent and 2.1 per cent, respectively, as oil prices dipped.

The strong dollar put pressure on the price of gold, sending miners Fresnillo and Endeavour Mining down 4.7 per cent and 4.3 per cent, respectively.

Marks & Spencer was a prominent gainer, up 4.1 per cent, as it outlined the next phase of its transformation strategy at a capital markets day event.

On the FTSE 250, Funding Circle leapt 13 per cent as it upgraded its full-year expectations, citing resilient demand from small and medium-sized enterprises.

EUROPE

⁠Lufthansa rose 1.3 per cent and Air ​France-KLM soared 3.4 per cent as sector followers monitored oil price.

Infineon added 0.9 per cent after the German chipmaker forecast revenue growth of more than 20 per cent in 2027 and a roughly five-percentage-point increase in ‌profitability.

French payment services firm Edenred rose 6.4 per cent after a Brazilian judge suspended part of new meal voucher ‌rules for companies in a local lobby group, including Pluxee and Edenred’s Ticket.

NEW YORK

Wall Street’s main indexes were in retreat in early afternoon trading, pausing a ‌two-day rebound in tech shares, after a hotter-than-expected October inflation reading reinforced fears that the Federal Reserve could keep interest rates higher for longer.

Earlier in the day, Fed ​governor Christopher Waller said the central bank should raise interest rates by at least a quarter of a percentage point next month even if inflation cooled in October. If price pressures accelerated, policymakers should consider a half-percentage-point increase, he said.

Among rate-sensitive ⁠sectors, financials rose, while utilities and real estate were ​among the laggards.

Shares of Nvidia, the second-most valuable company in the world, fell. Chief executive Jensen Huang’s affair with Chinese businesswoman ‌Alice Huang, alleged to be a spy for Beijing, ​facilitated the shipment of at least $7.5 billion (€6.7 billion) worth of the company’s chips through Chinese firms, The Information reported.

As chief executive of the company ⁠at the heart of the AI boom, Huang’s leadership ⁠and future at Nvidia are ​crucial to investors.

Attention is also turning to Anthropic’s expected public listing later this month. The AI lab revealed that its initial public offering is expected to raise as much as $64.4 billion, giving the company a fully diluted valuation of up to $1.4 trillion.

Media giant Skydance dropped after it announced cost-cutting plans and warned that the underperformance of Warner Brothers’ film slate would impact ‌fourth-quarter profit by up to $200 million.

Still, cooling oil prices offered some comfort, with Brent crude futures slipping below $90 a barrel for the first time since August. – Additional reporting, Reuters, Press Association