European stocks end four straight days of defeats


European stocks ended a four-day losing streak on Wednesday with shares of Telecom Italia leading the gains, but fears about the worsening situation of Covid-19 in Europe and the prospect of severe restrictions have restrained the market.

European stocks are on track for weekly losses as the return of pandemic brakes, rising rates and inflation concerns raised fears of weakening prospects for economic growth.

DUBLIN

The Iseq slipped 0.6% in Wednesday’s session, with losses contained by gains for CRH and Ryanair. The building materials group rose 1.4% to € 45.65, while the airline rose 0.9% to € 15.70 despite falling travel inventories across Europe.

Bank of Ireland also went green, up 0.3% to € 5.10, while shares of real estate investment trusts Hibernia Reit added 1.1% to € 1.27.

Elsewhere, several key names have declined, with the food group Kerry 3.1% drop to € 110.90 and insulation manufacturer Kingspan down 1.9% to € 97.62. Glanbia fell 1.8 percent to € 12.14, while Flutter Entertainment fell 1.9% to € 128.90.

Dalata Hotel Group ended down 1.4% to € 3.64 and AIB closed down 2.7% to just under € 2.09.

LONDON

The FTSE 100 gained 0.3% after hitting highs a week earlier in the session. PA and Royal Dutch Shell rose more than 1% each, with crude prices gradually rising as investors questioned the effectiveness of a US-led release of oil from strategic reserves. Miners added 0.5 percent, supported by rising copper prices.

Ripe soared after reporting that demand for its luxury goods had returned to pre-pandemic levels with sales in the UK and Asia generating a 34% increase in first half revenue.

The domestically-focused FTSE 250 index fell 0.1 percent, on weakness in health care stocks and consumer discretionary. IQE, which makes semiconductor wafers for chips, fell 24.3% after forecasting lower profit margins and lower annual revenues.

Asset manager Brewin’s dolphin slipped 6.1% after warning of upcoming market volatility.

EUROPE

The pan-European Stoxx 600 index climbed 0.1% after recording its worst session in nearly two months on Tuesday amid a continental resurgence in coronavirus cases and fears of an interest rate hike.

Telecom Italy jumped 15.6%, increasing the European telecommunications sector by 1.2%, following reports that KKR plans to strengthen its offer for the company after lead investor Vivendi called the initial offer a too low.

Rising coronavirus cases and supply chain constraints have clouded Germany’s growth prospects as the Ifo Institute said business morale deteriorated for the fifth consecutive month in November , pushing the country’s Dax index by 0.4% down.

Meanwhile, German Social Democrat Olaf Scholz has said he has struck a deal with Free Democrats and Greens to form a new coalition government that will end the Angela Merkel era.

German manufacturer of medical equipment Draegerwerk plunged 12% after saying they expected lower sales and profits next year, citing weak demand for products linked to the pandemic.

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The S&P 500 and Nasdaq rose as positive jobs and consumption data boosted economically sensitive sectors, while major tech stocks rebounded after two days of steep losses. Most heavy tech stocks cut their initial losses and traded higher at noon.

Weak performance of the department store operator Nordstrom and fashion retailer Difference Sentiment cooled somewhat, however, as both companies reported supply chain issues ahead of the crucial holiday shopping season. Nordstrom and Gap plunged 28.8% and 22.1% respectively.

You’re here rose 0.9% as chief executive Elon Musk sold an additional 934,091 shares of the electric vehicle maker worth $ 1.05 billion (938 million euros) after exercising options to purchase of 2.15 million shares.

Actions by PC manufacturers HP and Dell Technologies jumped 9.3 percent and 5.1 percent respectively after posting a more than four-fold increase in quarterly profits. – Additional reports: Reuters


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