Stocks extend September rally despite fears of US government shutdown

World shares advanced on Monday, extending September’s rally in a session that finished on a note of caution as investors weighed the prospect of a US government shutdown.

Without an agreement, a shutdown would commence on Wednesday, potentially disrupting the release of key economic data, including the closely watched September non-farm payrolls report, later this week.

DUBLIN

The Iseq Overall Index underperformed its European peers, dipping 0.4 per cent amid declines for the main banks and Ryanair.

AIB fell 0.6 per cent to €7.65 per share after Cerberus, the New York distressed-debt giant, is among bidders vying to take over a potential sale of a portfolio of the bank’s non-performing loans.

Bank of Ireland lost almost 1 per cent to close at €13.76 per share.

Ryanair dipped 0.6 per cent to €23.85 per share.

Meanwhile, housebuilders Cairn Homes and Glenveagh Properties advanced, adding 1.6 per cent and 2.7 per cent respectively.

Healthcare group Uniphar jumped 1.8 per cent to €3.90 per share while Kerry Group advanced to €76.95 per share, up 1.6 per cent.

EUROPE

The blue-chip Stoxx 50 index and the pan-European Stoxx 600 finished 0.3 per cent higher.

European miners climbed, tracking higher metal prices, with gold at a record high and copper prices in London also gaining. Tara Mines owner Boliden jumped 4.5 per cent while its Swedish peer Sandvik added 0.3 per cent.

Technology stocks gained, with chipmakers ASMI, ASML, and BE Semiconductor up by between 1.8 per cent and 3 per cent.

Luxury stocks also jumped. Shares in Kering rose by nearly 4 per cent to their highest level this year on optimism that new chief executive, Luca de Meo, can turn the struggling Gucci owner’s fortunes around.

Ray-Ban maker Essilor Luxottica, LVMH and Hermes were all up by between 1.5 per cent and 2.4 per cent.

European stocks cheered the US Federal Reserve’s first interest rate cut of 2025 earlier this month, but remain more than 1 per cent away from their all-time highs, falling behind Wall Street.

LONDON

UK stocks rose with the benchmark FTSE 100 inching 0.1 per cent higher while the mid-cap FTSE 250 added 0.7 per cent.

Health shares led broad-based gains, while investors focused on a potential US government shutdown that could delay key economic data.

Pharmaceutical giant GSK’s shares rose 2.3 per cent following an announcement that chief executive Emma Walmsley will step down in December and be replaced by company insider Luke Miels.

Meanwhile, heavyweight AstraZeneca rose 1 per cent after revealing plans to directly list on the New York Stock Exchange, though the company emphasised it will maintain its London listing and headquarters.

Precious metal miners also jumped on rising gold prices with Rio Tinto, Anglo American and Antofagasta all ahead by between 1.7 per cent and 5.3 per cent.

NEW YORK

Wall Street’s main indices were mixed, with the Nasdaq Composite up by 0.5 per cent while the S&P 500 edged 0.2 per cent higher and the Dow Jones Industrial Average dipped by 0.1 per cent.

A potentially turbulent week lies ahead, with a slew of officials from both the Fed and the European Central Bank set to speak as investors eye a US government shutdown.

Wall Street largely shrugged off those anxieties, however, with tech and communication sector stocks advancing.

Nvidia rose 2.8 per cent, while Micron Technology added 4.9 per cent. Lam Research advanced 2.6 per cent, after Deutsche Bank upgraded the rating on the chip-making equipment firm to “buy” from “hold”.

Meanwhile, losses in stocks such as Chevron, down 2.3 per cent, and McDonald’s, down 0.7 per cent, weighed on the Dow. – Additional reporting: Reuters, Bloomberg