European shares edge higher as energy and defence stocks make gains

Europe’s benchmark stock index edged up on Thursday, buoyed by a rally in energy and tech stocks that ended its longest losing streak in more than two months, while geopolitical tensions underpinned demand for safe-haven assets.
Uncertainties around the escalating Ukraine-Russia conflict drove up oil prices, leading to gains in the energy sector that ticked 1.3 per cent higher. Defence stocks rose 1.5 per cent.
The Iseq slipped 0.4 per cent, failing to join in the positive trend seen across the major European indices. Kingspan was one of the few key stocks to advance, with the insulation-maker rising 1.5 per cent to €73.45.
Ryanair fell 1.35 per cent to €18.24, while the banks also declined, with Bank of Ireland finishing down 1.8 per cent to €8.71 and AIB nudging down 0.2 per cent to €5.40.
Food group Kerry slid 0.75 per cent, finishing at €85.95.
The blue-chip FTSE 100 rose to a near two-week high on Thursday, closing up 0.8 per cent as a dip in sterling and rise in Halma’s shares offset a slump in JD Sports after it issued a profit warning.
Shares of international, dollar-earning firms such as AstraZeneca, Shell and BP rose as sterling slumped to a six-month low against the dollar.
Halma rose 5.7 per cent after the health and safety device maker posted growth in half-year revenue and profit.
But JD Sports Fashion plunged 15.5 per cent after it warned annual profit would come in at the lower end of its guided range after a tough October of discounting, mild weather and consumer caution.
The midcap FTSE 250 index rebounded 0.5 per cent from a three-month low hit earlier in the session.
The pan-European Stoxx 600 index was up 0.5 per cent, snapping its four-day losing streak, amid gains for energy companies and defence stocks.
Assets perceived as safe havens have been on the rise, with gold, the Swiss franc and the US dollar edging up on the day.
A 1.6 per cent gain in insurers also provided support. It was boosted by a 3.1 per cent rise in Zurich Insurance after the company’s upbeat three-year targets and a 6.8 per cent rise in Poland’s PZU following third-quarter results.
European tech stocks ASML and SAP reversed early losses and gained more than 2 per cent each, with the world’s largest company by market value, Nvidia, forecasting fourth quarter revenue above estimates.
Soitec jumped 7.5 per cent after the French semiconductor materials supplier’s half-year results, limiting the tech sector’s losses. CTS Eventim slumped 8.1 per cent following the German ticketing group’s nine-month results.
Wall Street’s main indexes were mixed in volatile trading, with Alphabet’s losses weighing on the benchmark S&P 500 and the Nasdaq, while the blue-chip Dow touched a one-week high, boosted by a 4.5 per cent advance for cloud company Salesforce.
Alphabet slid 6.2 per cent to touch a more than three-week low after the Justice Department argued to a judge that Google must sell its Chrome browser and take other measures to end its monopoly on online search.
The stock’s losses weighed on the communication services sector, which fell 2.6 per cent, while nine of the 11 S&P 500 sectors traded higher.
Amazon lost 3 per cent after a report said it will likely face an EU investigation next year into whether it favors its own brand products on its online marketplace.
Nvidia shares were choppy and were last down 0.5 per cent. The chip company surpassed expectations for quarterly results, and projected fourth-quarter revenue above estimates. But some investors were unimpressed that the forecast was its slowest in seven quarters. – Additional reporting: Reuters