Iseq surges to all-time high after ECB rate cut
The pan-European Stoxx 600 index edged up 0.2 per cent in reaction to the news.
DUBLIN
The Iseq All-Share index ended the session up 2.07 per cent, 234.84 points, to 11.606.50.
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The banking sector saw a sharp rise in response to the ECB announcement, Bank of Ireland rose 3.84 per cent to €12.44, with AIB coming in just behind that rise, up 3.74 per cent to €7.07. Permanent TSB broke the sectoral continuity, falling 1.94 per cent to €1.77.
Kingspan closed up 2.97 per cent in reaction to news that the company is set to make a $1 billion (€900 million) capital investment into the US over the next five years, an increase on its previous budget of $750 million.
A series of defensive stocks also rose on the day, Kenmare rose 3.11 per cent, Glanbia followed suit rising 2.71 per cent and Uniphar closed 2.24 per cent.
LONDON
Britain's benchmark index closed a shade higher on Thursday with mining stocks leading gains, tracking higher metal prices in a choppy session as investors looked for new developments on the trade front, while a drop in Wizz Air shares hit midcaps.
The blue-chip index FTSE 100 ended 0.1 per cent higher, marking its fifth consecutive single-day gain, while the midcap index fell 0.2 per cent.
Industrial metal miners were among the top gaining subsectors, up 1.8 per cent as copper prices touched a two-month high. A gauge for precious metal miners also climbed 3.5 per cent.
Losses in advertising group WPP and top food retailer Sainsbury's kept a lid on gains in the blue-chip index, as their shares traded without entitlement to a dividend.
Among midcaps, Wizz Air plunged 27.9 per cent after the budget carrier reported an approximately 62 per cent slide in annual operating profit, citing capacity constraints due to grounded planes. Other airline stocks like EasyJet and IAG declined about 1 per cent each.
On the flip side, Dr Martens jumped 25.8 per cent after the bootmaker forecast a return to profit growth in the current financial year.
EUROPE
The pan-European Stoxx 600, which was initially in positive territory, abruptly reversed course, crawling into the red as Lagarde's remarks about the bank being 'well-positioned' to handle global economic uncertainty sent a signal to investors to temper dovish expectations. The benchmark index finally edged up 0.2 per cent.
The banking sector bounced back from an early dip to emerge as the day's top sectoral performer, benefiting from the prospect of rates staying higher for longer.
Conversely, the rate-sensitive real estate sector, initially buoyed by the rate cut, saw its gains evaporate after Lagarde's remarks, closing 0.2 per cent lower.
The broader consumer discretionary segment bore the brunt of the market's recalibration, with food and beverage stocks – seen as bellwethers for consumer spending – suffering the steepest declines.
Luxury stocks, another segment heavily reliant on consumer confidence, trailed closely behind as the second-worst performer.
Elsewhere, industrial metal miners climbed 1.4 per cent, on the coattails of surging copper prices which touched a two-month high.
Wise gained 7.1 per cent after the money transfer company said it intends to move its primary listing to the US from London.
Bayer was up 4.4 per cent after Goldman Sachs upgraded the German chemicals group to 'buy' from 'neutral'.
NEW YORK
Wall Street indexes rose on Thursday in mid afternoon trading after US President Donald Trump and Chinese leader Xi Jinping agreed to negotiate on tariffs that have weighed on global markets, while investors awaited a key jobs report to gauge the labour market's health.
Seven of the 11 major S&P 500 subsectors rose, with information technology shares leading the gains.
Tesla shares fell as much as 5 per cent during the day. Chief executive Elon Musk and self-proclaimed 'First Buddy' of Trump has stepped up criticism of the president's massive tax legislation in recent days.
Brown-Forman had dropped the most on the S&P 500 in mid afternoon trading, after the Jack Daniel's maker forecast a decline in annual revenue and profit.
Procter & Gamble said it will cut 7,000 jobs, or about 6 per cent of its workforce, over the next two years, as part of a restructuring. Shares of the consumer goods bellwether fell 1.2 per cent. – Additional reporting, Reuters, PA.
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Irish Times
an hour ago
- Irish Times
Blame farmers not supermarkets for the rising price of food
Next time you find yourself standing at the supermarket checkout wondering how the handful of items in your basket could possibly cost €50 it should be of some comfort to know that the Government has had a look at the issue and concluded there is nothing untoward going on. It seems that the great supermarket price gouging furore of last May and June is a ball of smoke. Under considerable pressure from the Opposition about 'out of control' food prices the Government asked the Competition and Consumer Protection Commission (CCPC) to revisit an analysis of competition in the grocery sector carried out in 2023. The CCPC released its update last Thursday and the message is very much along the lines of nothing to see here. There is no denying that prices have gone up dramatically but the culprits, according to the CCPC, are not fat-cat supermarket bosses. If anything, the State agency comes perilously close to saying the supermarkets have shielded us from the price increases being demanded by that most cherished of Irish social classes, the farmers. No one is saying that competition in the grocery sector is not all that it could be. The five large supermarket chains – Dunnes Stores , Tesco , SuperValu , Lidl and Aldi – have increased their combined market shares slightly to 93 per cent from 91 per cent over the past few years but this varies from month to month according to the CCPC. READ MORE Their current shares are Dunnes Stores (23.6 per cent), Tesco (23.3 per cent), SuperValu (20.2 per cent), Lidl (14 per cent), and Aldi (11.8 per cent). The important issue, according the CCPC is market concentration, which is a measure of a participant's ability to exercise market power and to lower competition. The review found that market concentration in Ireland is decreasing and is currently 1,735 on something called the Herfindahl-Hirschman Index (HHI). A market with a HHI score of less than 1,500 is considered competitive, a HHI between 1,500 and 2,500 shows moderate levels of competition and concentration. Competition is increasing, they argue, with Aldi, Lidl and Tesco all publicly committed to opening new stores and the continued investment in own brands by all the players. You may not be feeling it but according to the CCPC: 'Overall, the grocery retail sector demonstrates positive signs of competitive dynamics with new products and services and a strong level of competition on price including aggressive marketing to consumers on price offers.' It notes that while we have experienced a 27 per cent increase in prices from 2021 up to June 2025 this is well below the European Union average, which has risen by 35 per cent over the same period. They also note that Ireland's rate of grocery price inflation has been below the EU average for 15 of the past 16 years (every year since the 2008 financial crisis apart from 2024). 'Overall, the high-level inflation figures do not suggest any significant market problems in the Irish grocery retail sector. If anything, the evidence suggests that Irish consumers have experienced significant price benefits compared to European counterparts,' concludes the CCPC. It's not quite 'stop your whinging, you don't know how good you have it', but it's close. It is certainly not what the Government was expecting or wanted to hear. Neither is the assertion that supermarkets are to be lauded for keeping prices down in the face of demands from food producers. 'There is a strong argument to suggest that this benefit [lower than average price inflation] has been influenced by the increased competition in the grocery retail sector discussed above,' the consumer watchdog ventures. The CCPC doesn't get into why farmers are pushing up their prices by more than their costs but the answer is probably the same reason any business would: because they can in a high-inflation environment The CCPC sees two broad reasons for why food prices are going up. The first is simply that Ireland is an expensive place. They cite structural factors in the Irish economy such as higher wages, geographic location and higher costs in construction, legal services and insurance, which push up prices here. The second reason is that food producers are increasing their margins. 'We can see that up until 2024, agricultural output prices largely tracked agricultural input prices. But in the very recent period, agricultural output prices have shown a strong increase compared to agricultural input prices,' according to the CCPC. It notes that agricultural output prices rose by 19.3 per cent during 2024, well above the EU average of 2.6 per cent for the same period. The CCPC doesn't get into why farmers are pushing up their prices by more than their costs but the answer is probably the same reason any business would: because they can in a high-inflation environment. There is another argument about what constitutes sustainable and fair margins in Irish farming but that is not much use to the Government. Politically, it is one thing scapegoating large supermarket chains for the rise in the price of groceries and associated public annoyance. It's another thing altogether blaming farmers.
Irish Times
an hour ago
- Irish Times
Presidential election: Former chief medical officer Tony Holohan signals ‘encouraging' poll data
Former chief medical officer Tony Holohan has offered the strongest signal yet that he will enter the race for the presidency as he described the results of research carried out on his potential candidacy as 'encouraging'. Prof Holohan 's supporters, who back a run for Áras an Uachtaráin, used polling company Amárach Research to explore his viability as a candidate. Participants in a survey were asked to rank their preferred choice for president out of five names listed. Fine Gael's Mairead McGuinness led the field on 29 per cent while Independent candidate Catherine Connolly was next on 22 per cent. These two are the only candidates who appear at this stage to have secured the nominations required to appear on the ballot paper. READ MORE Sinn Féin leader Mary Lou McDonald , who has not ruled out a presidential run, was on 20 per cent. Mr Holohan was on 15 per cent and former taoiseach Bertie Ahern – who has been among those speculated on as a potential Fianna Fáil candidate – was also on 15 per cent. Independent TD Catherine Connolly has held a press conference outside Leinster House where she spoke about her plans to run for president. Video: Bryan O'Brien Mr Holohan was CMO during the Covid-19 pandemic and should he seek the presidency, he will likely face scrutiny over his high-profile role at the time. Asked about the polling, Mr Holohan said he has been 'greatly encouraged' by people contacting him and suggesting he should run. 'Some supporters arranged for this limited piece of research and I was aware it was taking place. The results are encouraging, especially as I have not declared my candidacy,' he said. Mr Holohan said entering the race is a 'significant decision' and he is consulting with families and friends. 'I am conscious that any bid to secure a nomination needs a serious campaign. If I decide to proceed, I am confident I can put such a campaign in place quickly. I am fully aware that the decision will have to be made very soon,' he added. Those wishing to secure a place on the presidential election ballot paper must secure nominations from 20 Oireachtas members or four local authorities. Last weekend, businessman Gareth Sheridan announced he is entering the race and will seek council nominations. The field work for the Amárach Research survey was carried out between July 29th and 31st, before Mr Sheridan made his announcement. Labour Party backs Connolly Listen | 50:26 The questions on the presidency were posed as part of a wider omnibus survey on different topics. Amárach Research chairman Gerard O'Neill said the research was conducted online and it was 'a nationally representative survey of 1,000 adults', randomly selected from a larger panel maintaining quotas for age, gender, region and social class. He said the research offered an 'interesting snapshot' on the presidential election, but also that 'ideally you would go further' and also look at areas like likelihood of voting and party affinities. He said there is typically a margin of error of plus or minus 3 per cent for such surveys and the results are subject to statistical rounding. The cost of having questions asked as part of omnibus surveys can run from hundreds of euros to the low thousands. Mr O'Neill declined to confirm the sum spent on the questions on the presidency, saying it is 'commercially sensitive information'. He said paying for questions as part of an omnibus survey is a 'low-cost way of doing market research'.
Irish Times
an hour ago
- Irish Times
US-China tariffs truce buoys European shares
News of an extension to the tariffs truce between the US and China gave confidence to European investors and shares closed higher on Tuesday. Sectoral gains were led by energy shares but declines in heavyweight technology stocks limited advances. The European benchmark ended up 0.21 per cent to 547.89 in trading on Tuesday, DUBLIN The Iseq All-Share index ended the session up 0.75 per cent to 11,497.68, buoyed by a strong performance by AIB . The Irish bank rose 2.09 per cent to close at €7.10 in a strong day for the sector. Permanent TSB rose 0.9 per cent, reaching €2.24, while Bank of Ireland gained slightly, up 0.43 per cent to close at €12.935. READ MORE Mid-cap insurance brokers FBD Holdings rose 5.07 per cent to €14.50. It was a mixed day for the home builders. Glenveagh Properties rose 1.68 per cent, reaching €1.94, but Ires Reit was a drag on the index, falling 2.18 per cent to €0.988. Cairn Homes also fell on the day, dropping 0.68 per cent. In line with international sectoral movement, airliner Ryanair gained 1.08 per cent, reaching €26.20. LONDON The FTSE 100 made steady progress on Tuesday, boosted by a US-China trade extension and broadly as expected US inflation figures. The FTSE 100 index closed up 0.2 per cent, at 9,147.81. The FTSE 250 ended 0.2 per cent down, at 21,842.69. In individual shares, half-year results from Spirax Group were seen as 'very reassuring', following a difficult period marked by significant headwinds, analysts said on Tuesday. Shares in the Cheltenham-based industrial engineering company specialising in thermal energy management and fluid technology solutions soared 13 per cent as it reiterated full-year guidance and reported six-month results in advance of expectations. Isle of Man-based gambling firm Entain fell back 1.9 per cent after posting a £96 million pretax loss for the six months that ended on June 30th, compared with a profit of £13.7 million the year prior. Housebuilder Bellway climbed 1.6 per cent as it predicted further growth in the financial year ahead, despite 'softer' market conditions in recent months, and reported new home production in advance of guidance. EUROPE Most sectors on the benchmark STOXX 600 rose, led by energy with a 1.5 per cent advance. Vestas Wind Systems outperformed peers with a 4.7 per cent gain, after receiving US orders for undisclosed projects. Heavyweight tech shares fell 2.1 per cent to their lowest levels since early May. Software stocks in particular fell sharply on concerns that artificial intelligence could weaken this technology segment. SAP slid 7 per cent, while Nemetschek SE was down 11 per cent, the biggest decliners on the index. The stocks logged their steepest one-day declines since 2020. Sartorius rose 7.4 per cent after Jefferies upgraded the pharmaceutical equipment supplier's stock rating to 'buy' from 'hold'. Most regional indexes were higher, but Germany's DAX dipped 0.2 per cent. German investor morale fell more than expected in August, an index showed. Earnings in Europe have been resilient so far, partly because the recent EU-US tariff deal has eased concerns over how Trump's levies might affect corporate performance. Markets also eyed a Friday meeting between Donald Trump and Russian president Vladimir Putin on Russia's war in Ukraine. NEW YORK In midafternoon trading on Tuesday, Wall Street's main indexes were all advancing after losing ground in the prior session, with financials, communication services, energy, industrials and materials driving gains. US stocks have rallied in recent weeks and the tech-heavy Nasdaq touched a record high on Tuesday. The market was boosted by better-than-expected earnings from technology majors, a detente between the US and its top trade partners and on expectations of rate cuts. Among single stocks, Intel rose after Trump praised its chief executive Lip-Bu Tan following their meeting on Monday, days after seeking Tan's resignation. US-listed shares of On Holding climbed after the sportswear maker raised its annual sales forecast. Cardinal Health fell after the drug distributor said it would buy healthcare management firm Solaris for $1.9 billion. – Additional reporting, Reuters, PA.
