European shares dipped on Friday but markets elsewhere edged up as investors marked time in advance of next week, when the US Federal Reserve will meet and leading tech and industrial companies are due to report figures.
Dublin
The Dublin market trailed the rest of Europe as a fall in Ryanair shares, sparked by investors’ fears that oil prices will rise after US president Donald Trump said a US “armada” was bound for Iran, weighed on the Irish index.
Ryanair lost 2.38 per cent to close at €28.71. Oil prices surged on news of a potential US intervention in Iran, but air travel stocks lost altitude across Europe as a consequence.
Traders noted that the airline, one of the market’s biggest stocks, had “big impact” on the Iseq index of Irish shares.
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Housebuilders also endured a tough day. Cairn Homes shed 3.23 per cent to close at €2.095. Glenveagh Properties slipped 2.89 per cent to €1.952.
London
Irish cider maker C&C tumbled more than 11 per cent as London’s blue-chip FTSE 100 ended the week on a losing note.
Renewed geopolitical uncertainty weighed on investor sentiment though mining stocks closed the week with robust gains.
The FTSE 100 closed down 0.07 per cent, breaking its three-week winning streak in which it had gained about 3.5 per cent, its longest run since August.
London’s domestically-focused FTSE 250 retreated 0.2 per cent from a more than four-year high hit on Thursday.
Bulmer’s cider brewer C&C Group lost its sparkle after the company said it expected full-year operating profits to fall between €70 million and €73 million, lagging last year’s return of €77.1 million.
C&C, which also produces lagers Tennent’s and Menabrea, blamed weak consumer spending in the wake of November’s British budget. Shares slid 11.04 per cent to 114.4 pence sterling.
Building materials giant, CRH, which has its main listing in New York, ended 1.14 per cent down in London at 9,020p on a day when many stocks in its industry were hit.
Aer Lingus owner, IAG, also parent of British Airways and Spain’s Iberia, fell 2.79 per cent to 418.3p as investors swerved airlines on fears that oil prices are destined to rise.
Ryanair rival EasyJet, shed 2.98 per cent to 481.9p.
Gold miners were back in vogue. Fresnillo rose 2.1 per cent to 4,168.0p, while Endeavour Mining climbed 2.2 per cent to finish at 4,366.0 as precious metals prices increased.
Europe
The Stoxx Europe 600 Index fell about 0.1 per cent by the close. It dropped 1 per cent over the past five days, its first weekly decline in six.
Travel and leisure stocks were among the biggest laggards, along with economically sensitive sectors such as banks, consumer products and construction. Telecom and mining sectors outperformed.
Investor sentiment was rattled this week after US president Donald Trump’s threat to impose new Greenland-linked tariffs. Stocks clawed back some losses on Thursday after Trump backed down, and investors are willing to look past some political turbulence given a resilient economic outlook.
“The very limited pullback this week shows that investors are getting used to the noise, with the Trump administration seemingly pedalling back whenever markets react too strongly,” said Philipp Lisibach, head of strategy and research at LGT Private Banking.
Deutsche Lufthansa AG dropped 1.9 per cent, while Air France-KLM slid 3.2 per cent and International Consolidated Airlines Group SA declined 2.8 per cent. WTI crude futures climbed 2.9 per cent.
Ericsson AB rose 11 per cent after the telecom-equipment maker’s efforts to cut costs and boost margins paid off.
New York
Megacaps were the big focus on Wall Street as markets closed in Europe.
AI developer Nvidia climbed 1.6 per cent as China told tech firms they can prepare orders for H200 AI chips. Intel sank 17 per cent on a tepid outlook.
Observers said investors bided their time on Friday as they prepared for a busy week ahead. Industrial giant Caterpillar is due to report, as are tech groups Microsoft and Facebook owner Meta Platforms.
The US Federal Reserve, the country’s central bank, also meets next week.
New York’s leading S&P 500 index hovered near 6,920 shortly after 5pm Irish time. Megacap stocks, which include the market’s tech giants, had climbed 1.3 per cent by that time. – Additional reporting: AP/Bloomberg/Reuters
