Stocks recovered from sharp losses on Monday after US president Donald Trump ordered a pause on military strikes against Iranian power plants, prompting traders to rein in their rate-hike expectations.
Global markets staged a sharp recovery after Trump’s comments, with Europe’s Stoxx 600 and precious metals edging up while oil prices fell, signalling improving risk appetite.
Dublin
The Irish index of shares started the week on a positive note, ending Monday’s session 1.75 per cent higher.
There were gains among banking and some construction stocks, with travel companies also regaining ground.
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Showing positive movement on Monday were AIB, which added 2.65 per cent, and Bank of Ireland, which gained 2.81 per cent. Insurer FBD saw more muted gains, at 0.61 per cent, while PTSB added 0.34 per cent.
Ryanair added 2.55 per cent to its share price on Monday, while Irish Continental Group gained 0.63 per cent.
Among construction stocks, insulation specialist Kingspan was up 2.22 per cent over the day, closing at €71.30. Home builders Glenveagh and Cairn, however, lost ground over the session.
Food groups Kerry and Glanbia also had a negative start to the week, with the former losing 1 per cent and the latter shedding 0.36 per cent.
London
The blue-chip FTSE 100 fell as much as 2.4 per cent during the session before recovering to close down 0.2 per cent, near a three-month low.
Heavyweight oil majors BP and Shell fell 2.2 per cent and 4.2 per cent respectively, following a sharp slide in crude prices, as Trump’s comments came ahead of a deadline that had raised fears of further escalation in the four-week-old Middle East war.
The mid-cap FTSE 250 dipped 0.2 per cent.
Energy stocks posted the biggest losses among sector indexes, falling from last week’s record highs as oil prices dropped sharply.
Most sectors traded in the green, with precious metal miners providing the biggest boost after gold rebounded from a four-month low.
Among other stocks, betting company Entain rose 8.2 per cent, topping the benchmark index after a WSJ report said US legislators are to introduce bipartisan Bill banning sports bets on prediction markets.
Europe
European stocks erased sharp declines to trade higher in one of the biggest swings in years. Airlines, luxury goods, banks and semiconductors saw some of the biggest rebounds on Trump’s comments on Iran, while energy stocks plunged with the price of oil.
The pan-European Stoxx 600 index rose 0.61 per cent. The CAC 40 in Paris closed up 1.2 per cent, while the Dax 40 in Frankfurt ended 1.5 per cent higher.
In single stocks, Poste Italiane SpA sunk more than 6.8 per cent after it launched a €10.8 billion public offer to delist Telecom Italia.
New York
The main US indexes climbed in broad gains on Monday as investors trimmed bets on interest-rate hikes from the US Federal Reserve.
Markets had scaled back bets last week to show no easing was expected in 2026 after the central bank struck a hawkish tone, projecting higher inflation and a single reduction this year.
By late morning, the Dow Jones Industrial Average rose 888.09 points, or 1.95 per cent, to 46,465.56, the S&P 500 added 108.40 points, or 1.67 per cent, to 6,614.88, and the Nasdaq Composite gained 399.63 points, or 1.85 per cent, to 22,047.64.
All three indexes were set for their biggest single-day jumps since February 6th.
Airlines jumped, with American Airlines and United Airlines adding more than 5 per cent each. Cruise ship operators soared, with Carnival Corp, Norwegian Cruise Lines and Viking Holdings all gaining more than 7 per cent.
Banks, which had sold off sharply during the conflict, inched up, with JPMorgan Chase and Goldman Sachs adding 1.7 per cent and 3 per cent, respectively. The S&P 500 Banking index gained 1.8 per cent.
Investors will look forward to Fed speakers, business activity surveys and consumer sentiment readings this week.
In individual stocks, Synopsys gained 3.7 per cent after activist investor Elliott Investment Management built a multibillion-dollar investment in the electronic design automation firm. – Additional reporting: Reuters
