The world’s biggest stock market headed toward all-time highs after US jobs data spurred bets on a December Federal Reserve rate cut. Equities extended this week’s advance, with the S&P 500 set for its 57th closing record in 2024.

European shares eked out gains on Friday, with French stocks logging their biggest daily rise in three weeks as investors factored in a potential budget despite ongoing political uncertainty, while also parsing the upbeat US jobs report.

Dublin

The Iseq index closed down 1.29 per cent on Friday, finishing at a value of 9,674. Both Kingspan and Kerry Group saw drops. Kingspan fell 1.75 per cent to €70.15. Kerry Group fell 0.89 per cent finishing the week at €89.05 a share. Ryanair dropped 0.59 per cent to €19.43, finishing the week in line with European peers.

In banking, AIB fell by 2.96 per cent to €5.24; Bank of Ireland decreased 1.96 per cent to €8.39 while Permanent TSB rose by 1.35 per cent to €1.50.

London

The blue-chip FTSE 100 ended at 8,308.61, down 0.5 per cent. The index logged its steepest one-day fall in three weeks on Friday, led by losses in precious metals and mining and utilities, while Direct Line jumped after Aviva agreed to buy the insurer, lifting the mid-cap index.

Direct Line jumped nearly 5.6 per cent. Aviva agreed to buy the smaller rival in a sweetened £3.61 billion pounds (€4.35 billion) cash-and-stock deal that will create the UK’s largest home and motor insurer. Aviva shares fell 1.2 per cent.

Precious metals and mining led the losses, declining 1.7 per cent, while utilities fell 1.6 per cent. Personal goods jumped 2.1 per cent to lead the sectoral gains.

Serco Group dropped the most on the midcap index, at 5.1 per cent, after UBS cut its rating on the outsourcing company to “sell” from “buy”.

Frasers launched a bid for Norwegian sporting goods retailer XXL ASA, saying it did not agree with the Oslo-listed company’s plan to issue more shares. Frasers dropped 3.6 per cent to the bottom of the FTSE 100.

Europe

The pan-European Stoxx 600 was up 0.1 per cent, logging its seventh consecutive day in advances and its strongest weekly performance in ten.

In France, the Cac 40 index rose 1.3 per cent to touch a fresh three-week high. The index also logged its steepest weekly rise in ten, trimming its annual drop to 1.5 per cent from over 3 per cent earlier in the week. French bond yields also dropped.

European luxury stocks jumped 3 per cent and touched a two-month high, with Italy’s Moncler among the top gainers with a 5 per cent rise after Goldman Sachs upgraded its shares to buy.

Germany’s Dax closed higher by 0.1 per cent to clinch an all-time high and logged its biggest one-week rise in over two months even as political uncertainty prevailed.

New York

The S&P 500 and the Nasdaq hit midday record highs on Friday as traders increased bets on a Federal Reserve rate cut this month following robust November nonfarm payrolls data, while a drop in UnitedHealth shares weighed on the Dow.

US job growth surged in November after being severely hindered by hurricanes and strikes, but a rise in the unemployment rate to 4.2 per cent pointed to an easing labour market, which should allow the Fed room to cut interest rates again this month.

Traders boosted bets the US Federal Reserve would cut interest rates this month, now signalling a more than 90 per cent chance of a 0.25 per cent rate cut at the central bank’s December meeting, versus 67 per cent before the jobs data was released.

Brokerages including Morgan Stanley are reiterating their expectation of a 0.25 per cent interest rate cut by the Fed following the employment data.

Lululemon Athletica jumped 18 per cent after the sportswear maker increased its full-year forecasts, while cosmetics retailer Ulta Beauty advanced 9.5 per cent after raising its annual profit forecast, pushing the consumer discretionary sector up 1.5 per cent to an all-time high.

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