European stocks steady as ECB holds rates and Lagarde resigns

European stock markets remained stable on Wednesday, October 28, after the European Central Bank announced it would keep interest rates unchanged for the first time in six months. The central bank also revealed that President Christine Lagarde plans to resign early. Despite these shifts in monetary policy and leadership, major indices across the continent held firm or posted modest gains.

In Dublin, the ISEQ All-Share index closed at 14,322.04, down 0.19 percent. The decline was driven by a pullback in banking shares. AIB stock fell 0.93 percent to €11.14, while Bank of Ireland shares dropped 0.92 percent to €18.85. Post Office Savings Bank shares also retreated, falling 1.01 percent to €2.95. The bank is currently involved in High Court proceedings regarding its proposed €1.6 billion acquisition by Austrian lender Bawag.

Other Irish sectors showed mixed results. Ryanair shares recovered from earlier losses to rise 1.19 percent to €22.97. Housebuilder CairnHomes increased 1.09 percent to €2.78, and Glenveagh Properties climbed 1.44 percent to €2.46. These gains were not enough to offset the losses in the banking sector, keeping the overall index in negative territory for the day.

London experienced more volatility, with the FTSE 100 ending the day up 0.26 percent and the FTSE 250 up 0.14 percent. However, specific stocks saw major swings. Haleon shares plunged 15.05 percent after the consumer healthcare company lowered its sales outlook, citing weak demand for cold medicines this flu season. Lloyds Bank shares fell 5.04 percent after its performance targets disappointed investors.

In contrast, Shell shares gained 2.1 percent even as oil prices fell. The energy company reported third-quarter adjusted earnings of $10.8 billion, double the $5.43 billion recorded a year ago, and increased its quarterly share buybacks. Diageo shares dropped 2.07 percent, while C&C fell 2.84 percent. AstraZeneca rose 2.26 percent, showing strength in the pharmaceutical sector.

Across Europe, the Euro Stoxx 50 rose 0.72 percent, and the Stoxx 600 climbed 0.77 percent. German stocks led the gains, with Adidas up 5.76 percent, Deutsche Bank up 3.78 percent, and Mercedes Benz Group up 2.35 percent. Renault shares jumped 6.91 percent in France. In Spain, Santander shares edged down 0.49 percent as they settled following a recent drop tied to Brazil's re-election of President Lula da Silva.

In New York, trading began cautiously after the Federal Reserve kept rates steady. Early data indicated the US economy expanded in the third quarter at its fastest pace yet. However, the Nasdaq 100 fell 1.3 percent before midday, while the Dow Jones Industrial Average dipped 0.4 percent. Investors grew selective in the technology sector, selling shares in companies like Alphabet and Samsung Electronics as they focused on firms with stronger AI integration.