European shares declined on Wednesday as investors weighed the economic fallout of the Middle East conflict as it entered its 12th day and digested a US inflation reading.
The pan-European benchmark Stoxx 600 closed 0.6 per cent lower, with most regional bourses also in negative territory.
Brent crude rose above $90 (€78) a barrel on Wednesday despite the International Energy Agency’s (IEA) proposal for a record release of oil reserves as analysts warned it will be inadequate to ease those fears.
Dublin
The Iseq All-Share index rose 0.5 per cent to 12,826.96. Banking stocks were generally in demand, defying weakness in the sector elsewhere in Europe, with AIB adding 1.6 per cent to €9.47 and Bank of Ireland rising 0.8 per cent to €16.12.
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Irish banks are among the most rates sensitive in Europe. They would stand to benefit if interest rates were to rise if inflation took hold. However, PTSB eased back 0.6 per cent to €3.10.
Glanbia lost 1.9 per cent to €17.20, while Kerry Group declined by 0.6 per cent to €69.55.
London
The UK’s main indexes closed lower on Wednesday, as oil prices continued to climb on concerns that the Middle East conflict will disrupt supply, while disappointing corporate earnings also weighed on sentiment.
The blue-chip FTSE 100 closed down 0.5 per cent, while the mid-cap FTSE 250 fell 0.4 per cent.
UK minister for finance Rachel Reeves said she would consider action to shield households from surging energy costs, but that it was premature to cap tariffs or freeze fuel duty now. The energy index gained 2.1 per cent, with oil majors Shell and BP up 1.9 per cent and 2.8 per cent respectively.
Investors also assessed a slew of mixed corporate updates. Legal & General fell 6.7 per cent after the insurer missed estimates for its full-year profit and reported a lower solvency ratio as chief executive Antonio Simoes pursues an overhaul.
Robert Walters dipped 7.9 per cent after the recruiter scrapped its final dividend for 2025 following a swing to an annual pretax loss due to a weak job market.
Balfour Beatty rose 8.9 per cent after the construction group forecast a high-single-digit percentage rise in 2026 profit from operations, with a record order book heavy with UK power projects, including nuclear power.
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Europe
Germany’s Dax fell the most, shedding 1.4 per cent, dragged lower by a 8 per cent drop in Rheinmetall after the defence firm’s outlook for profit margin and free cash flow in 2026 fell short of some analyst forecasts.
The decline also pulled the broader defence sector down 1.8 per cent, while the industrial sector fell 1.2 per cent.
Banks, among the worst hit in the European sell-off, lost another 0.6 per cent.
On the macro front, German inflation eased slightly in February to 2 per cent, while US inflation ticked up in line with estimates in February, but was overshadowed by the Iran war.
New York
Wall Street’s main indexes were lower in early afternoon trading, with the financials-heavy Dow leading declines as investors assessed a key inflation report and weighed the outlook for crude prices amid rising tensions in the Middle East.
The IEA agreed to release an unprecedented amount of crude oil reserves in an attempt to temper soaring energy prices. However, crude prices jumped 4 per cent as shipping through the strategic Strait of Hormuz is likely to be halted for a while.
Asset managers such as Blue Owl Capital and Ares Management dropped over 5 per cent each and jitters were felt across the financials sector.
Oracle predicted that the AI data centre boom will power its revenue above estimates well into 2027, sending its shares up 10.4 per cent.
Crude-price-sensitive travel stocks such as Delta and cruise liner Carnival were marginally lower. – Additional reporting: Reuters
