Latest news with #defencestocks
The Independent
6 days ago
- Business
- The Independent
Defence and gold in favour as FTSE 100 ekes out marginal gains
The FTSE 100 eked out marginal gains on Monday as advances in defence stocks helped offset nerves surrounding renewed US-China trade tensions. The FTSE 100 index closed up 1.88 points at 8,774.26. The FTSE 250 ended up just 0.96 of a point at 21,028.97, and the AIM All-Share closed up 1.45 points, 0.2%, at 748.13. Defence stocks climbed as Prime Minister Keir Starmer said the government will increase defence spending to 2.5% of gross domestic product from April 2027 with an ambition – but no firm commitment – to increase it to 3% during the next parliament. The Prime Minister said he was '100% confident' the plans in the new strategic defence review – including extra attack submarines, £15 billion on nuclear warheads and thousands of new long-range weapons – could be delivered on current funding plans. On the FTSE 100, Babcock International rose 8.3% while on the FTSE 250, Qinetiq advanced 4.5%. In European equities on Monday, the CAC 40 in Paris fell 0.2%, while the DAX 40 in Frankfurt eased 0.3%. European equities were held back by fresh developments in tariffs and renewed fears of a trade war between the US and China. Late on Friday, US President Donald Trump doubled tariffs on imported steel and aluminium to 50%, starting this Wednesday. At the same time, tensions with China resurfaced after Beijing rejected Mr Trump's accusations of violating the Geneva truce struck earlier in May. On Monday, China's commerce ministry said it had upheld the deal. It accused Washington of introducing 'a series of discriminatory and restrictive measures' in recent weeks that undermined the Geneva consensus and harmed 'China's legitimate rights and interests'. Hani Abuagla, senior market analyst at XTB MENA, said although US Treasury Secretary Scott Bessent suggested that a call between Mr Trump and China's President Xi Jinping may take place soon, markets remain wary of further escalation. 'The lack of clear progress risks reigniting trade volatility just as investors look for greater policy clarity,' Mr Abuagla added. The latest twist in the trade war saga saw renewed falls for the dollar and gains for the euro and sterling. The pound was quoted up at 1.3546 dollars late on Monday afternoon in London, compared with 1.3476 dollars at the equities close on Friday. The euro stood higher at 1.1429 dollars against 1.1348 dollars. Against the yen, the dollar was trading lower at 142.75 yen compared with 144.23 yen. The yield on the US 10-year Treasury widened to 4.46% from 4.41% on Friday. The yield on the US 30-year Treasury stretched to 5.00% from 4.92%. In New York, the Dow Jones Industrial Average was down 0.6% at the time of the London equities close on Monday. The S&P 500 was 0.3% lower and the Nasdaq Composite fell 0.1%. Investors weighed weaker-than-expected US manufacturing data. The seasonally adjusted S&P Global US manufacturing purchasing managers' index recorded 52.0 in May, rising from 50.2 in April. However, it fell short of the 52.3 flash estimate posted late last month. Meanwhile, figures from the Institute for Supply Management showed economic activity in the manufacturing sector contracted in May for the third consecutive month. The ISM manufacturing PMI registered 48.5 in May, compared with 48.7 in April, and below the 49.5 consensus. 'Manufacturing is muddling through tariff-related disruptions for the time being rather than falling apart, but the sector remains under intense pressure, with marked increases in the prices of many goods likely in the pipeline,' said Oliver Allen at Pantheon Macroeconomics. Data in Europe showed manufacturing was also subdued. The eurozone manufacturing sector remained in contraction in May but got closer to stabilisation, survey results from S&P Global showed on Monday. The Hamburg Commercial Bank manufacturing purchasing managers' index rose to 49.4 points in May from 49.0 in April, edging closer to the 50-point no-change mark. The final score was in line with the flash reading published late last month and reflects a 33-month-high. The PMI reading indicates a further easing of the manufacturing sector slowdown, S&P Global said, with the headline index reaching its highest level since August 2022. In the UK, the manufacturing sector also stayed in contraction territory in May, amid weak global demand and turbulent market conditions. The S&P Global UK manufacturing purchasing managers' index picked up to 46.4 points in May, from 45.4 in April, though it remained below the 50-point neutral mark. The reading topped the 45.1 point flash estimate. The renewed trade angst saw the price of safe haven gold shine once more. The yellow metal jumped to 3,371.47 dollars an ounce on Monday against 3,286.33 dollars. On AIM, Eagle Eye plummeted 43%. The London-based software-as-a-service marketing solutions company said Neptune Retail Solutions has, with effect from August 2, terminated a contract worth between £9 million and £10 million in annual revenue. It explained that the contract was to provide digital promotional services to a national US grocer, and that NRS in 2023 acquired digital promotions and content provider Quotient Technology Inc. 'The board is confident that this change has no impact on the group's growth opportunities, which remain strong,' Eagle Eye said. The biggest risers on the FTSE 100 were Babcock International up 77p at 1,013p, Endeavour Mining, up 154p at 2,406p, Fresnillo, up 70p at 1,233p, Rentokil Initial up 11.6p at 363.2p, and British Airways owner IAG, up 9.2p at 335.3p. The biggest fallers on the FTSE 100 were Ashtead Group down 177p at 4,158p, WPP, down 17.2p at 582.2p, Taylor Wimpey, down 2.6p at 116.9p, JD Sports Fashion, down 1.56p at 82.5p, and Spirax Group, down 105p at 5,610p. Brent oil was higher at 64.58 dollars a barrel at the time of the London equities close on Monday, compared with 62.53 dollars on Friday. Tuesday's UK corporate calendar has full-year results from utility Pennon Group and a trading statement from tobacco retailer British American Tobacco. The economic calendar on Tuesday has eurozone CPI and unemployment figures, and US factory orders data.
Reuters
27-05-2025
- Business
- Reuters
European shares steady as defence stocks climb on Russia sanctions threat
May 27 (Reuters) - European shares remained stable on Tuesday, supported by defence stocks after U.S. President Donald Trump threatened additional sanctions on Russia, though broader gains were restrained by ongoing caution over U.S. trade policy shifts. The continent-wide STOXX 600 index (.STOXX), opens new tab held its ground at 551.53 points, as of 0711 GMT. The benchmark closed 1% higher in the previous session after Trump extended the tariff deadline on the European Union to July 9 from June 1. Europe's defence index (.SXPARO), opens new tab rose 1% on the day after President Trump said he would recommend additional sanctions on Moscow, amid escalating tensions between Russia and Ukraine. In Britain, the FTSE 100 (.FTSE), opens new tab jumped nearly 1% as investors returned to active trading following a holiday on Monday. French benchmark index CAC 40 (.FCHI), opens new tab dipped 0.15% in early trading on Tuesday. Data showed consumer prices rose less than anticipated in May, signalling subdued inflationary pressure. Germany's DAX 40 (.GDAXI), opens new tab advanced to hover near a record peak. A recent survey indicated consumer sentiment is set to improve slightly heading into June, though cautious household spending may limit a robust recovery in Europe's largest economy. Shares in FLSmidth ( opens new tab rose 3.7% after Goldman Sachs raised the mining and cement technology supplier's rating to "buy" from "neutral".
Irish Times
15-05-2025
- Business
- Irish Times
Defence industry reverses early European share decline
Despite signs of a concurrent decline for the European benchmark, surging defence and industry stocks aided in the index closing higher on Thursday. Corporate earnings reports remained in the spotlight and the continentwide Stoxx 600 index was up 0.6 per cent DUBLIN The Iseq All-Share index ended the session down 0.35 per cent, or 39.13, to 11,124.21. READ MORE Strong performances by defensive stocks such as Glanbia, up 1.09 per cent to €12.08, and Kerry Group, up 1.03 per cent to €93.60, were not enough to keep the index in the green. Healthcare group Uniphar rose 3.03 per cent to €3.40. Kenmare Resources rose 1.31 per cent to €4.64 following its agm where the company said its former managing director, Michael Carvill and an Abu Dhabi private equity firm have been given a second extension to announce a firm intention to make a bid for the business. Insulation group Kingspan saw the biggest fall on the day, dropping 3.43 per cent to €77.50. Datalex, the Dublin-listed retail software provider to airlines, fell 2.86 per cent after the group said its loss before interest, tax, depreciation and amortisation widened 7 per cent last year to $3.1 million (€2.76 million). Budget airliner Ryanair rose 0.89 per cent to €22.70, with the highest turnover and volume on the market. LONDON British stocks ended higher on Thursday after stronger domestic GDP data, while investors assessed mixed corporate earnings. The blue-chip FTSE 100 rose 0.6 per cent, while the domestically focused FTSE 250 gained 0.1 per cent. Britain's economy grew more strongly than expected in the first quarter of 2025, providing a boost to the government and finance minister Rachel Reeves. Last week, the Bank of England's surprisingly hawkish stance slashed June rate cut expectations, with markets now anticipating quarterly rather than consecutive cuts. Hikma Pharmaceuticals gained 7.4 per cent, the most among FTSE 100 stocks, after the British drugmaker introduced a five-year revenue target of £5 billion in 2030. National Grid shares climbed 3 per cent after the renewable energy firm exceeded annual profit estimates. Sports retailer JD Sports gained 1.4 per cent after reports that American retailer Dick's Sporting Goods was nearing a deal to buy rival Footlocker. Keeping gains at check, the energy index fell 2.1 per cent, tracking lower oil prices on expectations of a US-Iran nuclear deal. Sage fell 3.8 per cent and was among the top losers in the blue chip index, after the software company's North America revenue growth slowed. EUROPE The European benchmark rose 0.6 per cent with most regional indexes following suit, including Germany's which was up 0.7 per cent at the close. Most defence stocks were higher, with Hensoldt up 8.8 per cent, Rheinmetall up 5.7 per cent and Leonardo gaining 4 per cent. The broader aerospace and defence index in Europe was up 2.3 per cent. France's Engie, London's National Grid and United Utilities jumped after their quarterly reports and lifted the utilities sector 1.9 per cent. Telecommunication stocks were the biggest gainers, helped by a 2.8 per cent increase in Deutsche Telekom after it reported first-quarter profit slightly above expectations. Most sectors on the benchmark Stoxx 600 were higher, although a pullback in commodity prices weighed on resource-linked companies. Big oil firms bore the brunt, with BP and Amsterdam-listed Shell shares falling 3.3 per cent and 1.5 per cent, respectively. The energy underperformed peers, falling 0.9 per cent. Basic resources also incurred heavy losses as industrial metal prices moved lower. NEW YORK The S&P 500 teetered between gains and losses in mid afternoon trading on Thursday as elation from the US-China tariff truce tapered off, with UnitedHealth among the biggest losers after a report said the DoJ was investigating the insurer for fraud. United Health Group plunged to a five-year low, dragging on other health insurers such as Humana and Molina Healthcare. Executives at retail giant Walmart said the company would have to start raising prices later this month due to the high cost of tariffs, even as its first-quarter US comparable sales beat expectations. Its shares fell slightly after it also did not provide a second-quarter profit forecast. Walmart joins a spate of companies across sectors that have either tweaked or pulled their forecasts, signalling that corporate United States is hunkering down for tariff-related uncertainties. Megacap and growth stocks were marginally lower after falling earlier in the day, with Amazon trailing. The energy sector declined as oil prices slid based on expectations of a US-Iran nuclear deal that could result in sanctions easing. On the brighter side, Cisco Systems saw a leap after the networking-equipment maker raised its annual forecasts and named Mark Patterson its new CFO. – Additional reporting, Reuters, PA
The Independent
09-05-2025
- Business
- The Independent
How stock markets have been affected by rising India-Pakistan tensions
Indian stock markets fell sharply on Friday as tensions with Pakistan intensified following Operation Sindoor, shaking investor sentiment. The Sensex dropped 880 points to 79,454, while the Nifty held just above 24,000. Broader indices also declined, and volatility surged amid escalating geopolitical uncertainty. Indian stocks opened lower on Friday morning following reports of overnight drone and munition attacks by Pakistani forces along the western border. While headline indices on Dalal Street (where the Bombay Stock Exchange is located) logged steep losses, the broader market took a heavier hit – small- and mid-cap stocks tumbled as much as two per cent. Market volatility spiked further, with the India Volatility Index (VIX) spiking over six per cent to 22.27, signalling rising investor nervousness. Traders said markets had not fully priced in the scale of the latest escalation. 'We're unwinding all risk positions,' one trader told Reuters, warning that any flare-up over the weekend could trigger more selling next week. Veteran investor Ambareesh Baliga said earlier sentiment had underestimated the threat of a wider conflict, amplifying Friday's downturn, according to India Today. Amid the broader selloff, defence stocks stood out as rare gainers. Shares of Bharat Electronics and Hindustan Aeronautics climbed between two to three per cent, as investors anticipated a boost in defence spending and policy support for domestic manufacturers. The Nifty Defence index was the only sector to rise, while all 13 other sectors ended the day with losses. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said investors should not panic or sell in a hurry. He was quoted as saying by The Times of India: 'Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India's clear superiority in conventional warfare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient, supported by global and domestic macros. Weak dollar and potentially weakening US and Chinese economies are good for the Indian market.' He added: 'The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why (Foreign Institutional Investors) FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle.' Earlier, Prashanth Tapse, senior VP (research), Mehta Equities Ltd told The Indian Express: 'There is growing uncertainty in the markets as investors are worried that the ongoing tension resulting in a major conflict between the two nuclear-powered nations going ahead could spark a major sell-off in equities, and hence profit-taking was seen in almost all the sectors barring select IT counters.' Meanwhile, in global markets, Japan's Nikkei and Topix rose 1.2 per cent after a US-UK trade deal lifted investor hopes for broader negotiations. Other Asian markets showed mixed results: Hong Kong's Hang Seng gained 0.2 per cent, Taiwan's stock index rose 1 per cent, and Australia's ASX climbed 0.4 per cent. The Indian rupee weakened by 30 paise, trading at 85.88 against the US dollar, while the dollar index dipped slightly to 100.6.
