A slide in luxury stocks including LVMH and Gucci-owner Kering dragged European shares into the red, but gold prices boomed amid geopolitical uncertainty. Traders kept an eye on the impending rate decision by the US Federal Reserve.
Dublin
The Iseq All-Share index ended the session largely flat, adding just 0.01 per cent in trading on Wednesday.
Ryanair added 2.09 per cent as brokers continue to push the stock following its quarterly results on Monday which predicted a big increase in passenger numbers.
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PTSB added 1.99 per cent to reach a share price of €3.08, this was against the grain for the sector, as AIB lost 2.43 per cent – the worst performer on the index – and Bank of Ireland fell 2.03 per cent.
Insulation and building materials specialist Kingspan Group gained 1.42 per cent, and agriculture group Origin Enterprises added 1.97 per cent.
London
The FTSE 100 index closed down 0.5 per cent at 10,154.43.
Geopolitical uncertainty rose around US president Donald Trump warning Iran that time was running out for the Islamic republic to prevent American military intervention amid a rejection of holding negotiations.
The unrest saw a spike in the oil price. Brent oil was up as equities closed in London on Wednesday and the gains supported oil majors BP and Shell, up 1.0 per cent and 1.3 per cent respectively.
The gold price rose, pushing Endeavour Mining up 4.3 per cent.
But Fresnillo fell 0.6 per cent after it said its annual production met or beat guidance last year, though it lowered output forecasts for 2026.
Amid concern over LVMH’s results, London-based fashion Burberry was 4.7 per cent lower.
Debenhams owner Boohoo climbed 5.5 per cent as it raised profit guidance amid strong trading at Debenhams and an improved showing from Pretty Little Things.
Healthcare stocks fell 2.4 per cent and were the biggest drag on the FTSE 100. Pharmaceutical firms Oxford Nanopore technology and AstraZeneca dropped 4.9 per cent and 2.7 per cent, respectively.
Europe
The pan-European Stoxx 600 index ended 0.7 per cent lower at 608.51 points, with luxury shares leading sector declines with a 3.8 per cent fall, their fourth consecutive day of losses.
Luxury stocks also came under pressure after French luxury conglomerate LVMH plunged 7.9 per cent as its fourth-quarter results dashed investor hopes of a speedy recovery in luxury demand, with a cautious outlook from its chief executive Bernard Arnault.
Gucci owner Kering lost 3 per cent, Moncler fell 2.9 per cent and Hermès dropped 3.7 per cent.
Chip equipment maker ASML eased worries about a near-term slowdown in demand after reporting stronger-than-expected fourth-quarter bookings. Broader caution around the sector, however, left the shares closing down 1.9 per cent after an initial jump to a record high.
Deutsche Bank fell 1.9 per cent after federal police searched its offices in Frankfurt and Berlin in an investigation related to money laundering, Frankfurt prosecutors said.
New York
The S&P 500 briefly topped 7,000 points for the first time on Wednesday only to pull back, with volatility picking up as traders awaited the Federal Reserve’s rate decision and a wave of Big Tech earnings.
The benchmark slipped back to little changed, while the Nasdaq held on to a mild advance after trimming earlier gains.
“These big round numbers can be difficult psychological tests for the market, but we think it’s a very positive sign,” said Jeff Buchbinder, chief equity strategist for LPL Financial.
Due to convene on Wednesday, traders were keeping an eye on the Federal Reserve and its chair Jerome Powell’s remarks, for clues on the future rate trajectory, with it expected to be unchanged on the day.
Nvidia climbed modestly, but Intel stocks soared. Micron and Microchip Technology each gained. SK Hynix, a key Nvidia supplier, reported a record quarterly profit and ASML booked its highest ever fourth-quarter orders, igniting a tech rally from Europe to Asia.
Meta, Microsoft and Tesla report after market close, kicking off the so-called “Magnificent Seven” earnings that have driven the AI trade, powering markets to record levels. Apple, whose results are due on Thursday, fell. – Additional reporting: Reuters, PA
