Irish Stock Exchange values advance as US interest rates hold steady

The Irish Stock Exchange outperformed European peers on Wednesday, driven by a wave of positive quarterly earnings from listed companies.

Meanwhile, the global spotlight was on the US Federal Reserve, as the central bank announced on Wednesday evening that it is keeping interest rates unchanged but left the door open to a further increase in borrowing costs.

DUBLIN

The Iseq All Share Index rose 1.69 per cent on Wednesday, closing at 7,966.97 and outperforming the rest of Europe.

Packaging giant Smurfit Kappa saw shares rise by 1.14 per cent to €31.09, after signalling its full-year earnings will come in slightly better than market expectations.

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AIB rose by 0.98 per cent to €4.13, after the bank hiked its full-year net interest income forecast for a third time in 2023 on Wednesday. Bank of Ireland shares rose by 0.05 per cent to €8.45 while Permanent TSB was down 3.19 per cent to close at €1.82.

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Kilkenny-based food company Glanbia rose by 1.88 per cent to €15.16, as it upgraded its earnings forecast for the year on the back of a better-than-expected performance in the third quarter and an improved outlook for the rest of the year.

A number of Iseq heavy hitters also benefited from sectoral gains, contributing to a general boost for the index. Paddy Power parent company Flutter Entertainment rose by 3.45 per cent to €153.05, while Ryanair was up by 3.28 per cent to close at €14.65.

Building materials company Kingspan rose by 0.38 per cent to €63.72, while food company Kerry Group was up 0.16 per cent to €73.

On the downside, insurer FBD Holdings fell by 1.28 per cent to €11.55, while mining company Kenmare Resources was down 1.72 per cent to close at €4.56.

LONDON

The UK’s benchmark FTSE 100 Index rose by 0.28 per cent on Wednesday, to 7,342.43, while the domestically focused FTSE Mid-Cap 250 Index was up by 0.78 per cent to close at 17,216.22.

Clothing retailer Next gained 3.6 per cent as it raised its annual profit outlook for the fourth time in six months, following better-than-expected sales in the third quarter.

Drugmaker GSK gained earlier in the day after raising its full-year profit and sales forecasts for a second time this year, but finished down 2.36 per cent.

There was a 10.70 per cent drop in Aston Martin shares after the luxury carmaker lowered its 2023 volume outlook due to production issues for its new sports car DB12.

EUROPE

The pan-European STOXX 600 index was up 0.69 per cent on Wednesday. Meanwhile, the French CAC 40 index rose by 0.65 per cent, and the German DAX was up 0.76 per cent.

Among individual movers, Danish offshore wind developer Orsted plunged by 25.69 per cent. It announced it had dropped the development of two US wind projects, following a third-quarter profit miss and large impairment charges.

Swedish builder Skanska dropped 12.4 per cent after reporting third-quarter operating earnings well below expectations as weak property markets took a toll.

NEW YORK

Wall Street climbed on Wednesday with investors optimistic about the Federal Reserve keeping interest rates unchanged later in the day.

The Fed confirmed that it would hold US benchmark interest rates steady for the second consecutive meeting, but left the door open to a further increase in borrowing costs.

Megacap growth stocks including Microsoft, Nvidia and Amazon all gained on the day.

CVS Health fell after the health services company tempered its 2024 earnings forecast, while Estee Lauder dropped after the beauty products maker cut its annual profit outlook.

Among other stocks, payroll processor Paycom Software plunged after projecting downbeat fourth-quarter revenue.

Tinder owner Match Group also fell, after forecasting fourth-quarter revenue below estimates. — Additional reporting: Reuters/Bloomberg