MSCI’s global equities gauge stayed close to flat on Wednesday while the dollar rose and gold prices dipped as investors digested cautious comments from Federal Reserve chair Jerome Powell about when the central bank might next cut US interest rates.
In his first remarks since the Fed meeting ended with a rate cut last week, Powell on Tuesday underlined the need for policymakers to balance the competing risks of high inflation and a weaker jobs market in its next monetary policy decisions.
Dublin
Shares in Kerry Group rose 1.4 per cent to €76.65 after the food ingredients giant announced it was opening a new biotechnology centre in Leipzig, Germany, where it will look to develop its next generation of nutritional products.
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After jumping by as much as 13 per cent in the previous session, Kingspan’s shares fell back by 1.5 per cent to €70.25
The insulation manufacturer is eyeing up a possibility of floating its advanced building systems unit Advnsys, which is focused on the global data centres boom and could to be worth €6 billion.
In an otherwise subdued day’s trading, Iseq heavyweight Ryanair ended the session marginally down at €23.27.
Europe
European defence shares rose on Wednesday following comments by US president Donald Trump signalling stronger support for Ukraine’s territorial recovery.
Trump expressed confidence that Ukraine could reclaim all territories lost to Russia, including Crimea and parts of Donetsk and Luhansk, with backing from Nato and the European Union.
This marked a significant rhetorical shift from his earlier position, which had been more cautious regarding territorial concessions.
Shares of Saab, Hensoldt, Renk Group, Leonardo, Thales, Rheinmetall, Dassault Aviation, QinetiQ, and BAE Systems were up between 1.6 per cent and 4.7 per cent.
The European aerospace and defence index climbed by 0.8 per cent, contrasting with a broader downturn in the Stoxx 600 index, which slipped by 0.45 per cent.
Trump also criticised Russia’s military capabilities, describing them as a “paper tiger,” and underscored Nato’s crucial role in deterring Russian aggression.
London
Britain’s FTSE 100 closed higher on Wednesday, led by miners and defence stocks, while investors assessed corporate updates and measured comments by Federal Reserve Chair Jerome Powell.
The benchmark FTSE 100 reversed earlier losses to gain 0.3 per cent. Antofagasta gained the most in the FTSE 100 with a 9.3 per cent rise, while Glencore added nearly 3 per cent.
Miner Anglo American rose 4.7 per cent after Angola’s state diamond firm Endiama bid for a minority stake in its diamond unit – De Beers.
The aerospace and defence sector rose 1.3 per cent, mirroring gains in European peers after US president Donald Trump, in an abrupt rhetorical shift, said he believed Ukraine could retake all of its territory now occupied by Russia.
Babcock International Group was among the top FTSE gainers, up 4.3 per cent.
New York
Wall Street’s main indexes were subdued in choppy trading on Wednesday as traders assessed measured comments from US Federal Reserve chair Jerome Powell and awaited key economic data due later in the week.
Although the recent numbers point to a resilient economy, commentary from Fed officials has injected some wariness, especially about the labour market, prompting investors to tread carefully.
Powell sounded a cautious note on Tuesday when he said asset prices appeared fairly highly valued.
Photoshop-maker Adobe fell 3.1 per cent after Morgan Stanley downgraded it to “equal weight” from “overweight”.
Declines in technology stocks also weighed on the Nasdaq.
Consumer discretionary added 0.8 per cent on the S&P 500, boosted by gains in Tesla and Amazon, which were up 2.8 per cent and 0.7 per cent, respectively. Amazon advanced after Wells Fargo upgraded it to “overweight” from “equal weight”.
Energy companies rose 1.5 per cent, while a 1 per cent fall in Alphabet led communication services 0.4 per cent lower.
Gains in banks such as JPMorgan, which was up 1.1 per cent, drove the Dow higher. – Additional reporting by Reuters
