Global shares advanced as oil prices fell, but remained volatile as traders assessed the viability of US claims about ceasefire talks with Iran.
Iran’s military leadership has poured cold water on the Trump administration’s 15-point plan to end the war, even as markets cheered increased US diplomatic efforts.
Dublin
Euronext Dublin finished the session up by 2.2 per cent, amid strong performances from the Irish banks.
After mixed trading on Tuesday, the three pillar banks advanced, with AIB adding 1.4 per cent to €9.27 per share, Bank of Ireland up 1.8 per cent to €15.83 and PTSB up 0.7 per cent to close at €2.96.
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With falling oil prices giving airline stocks a lift across Europe, Ryanair finished at €25.15 per share, up 2.4 per cent.
Home builders Cairn and Glenveagh were also in the green, adding 4.3 per cent and 3.6 per cent to close at €2.18 and €1.99 per share respectively.
Moving in the opposite direction, Kenmare Resources slumped by 8.7 per cent. The mining company said in a statement on Wednesday that it swung into a net loss of $325 million (€280 million) last year, driven by a $301.3 million impairment charge taken against its African assets as it lowered its long-term revenue assumptions amid uncertainty over pricing.
Kenmare has, in recent months, let 200 employees go at its Moma mine in Mozambique, and is targeting a further 20 redundancies under a cost-cutting plan, chief executive Tom Hickey told The Irish Times.
Europe
Euro-zone bond yields fell on Wednesday, led by a recovery in Italian bonds, which have been among the hardest hit since the start of the Iran war, as falling oil prices boosted risk appetite among traders.
Stocks also rallied with the pan-European Stoxx 600 index advancing by a little more than 1 per cent. The blue-chip Stoxx 50 also added about 1 per cent.
Markets are pricing a 65 per cent chance of a 25 basis point interest rate hike at the European Central Bank’s next meeting, boosting bets on euro-zone banks, which jumped on Wednesday.
Italy’s Intesa Sanpaolo added 1.5 per cent, while Spain’s Santander and BBVA were up by about 2 per cent. Dutch lender ING rose by 2.1 per cent.
Energy stocks were mixed, with Spain’s Iberdrola ahead by 0.7 per cent and France’s TotalEnergies down by 0.4 per cent.
London
The resources-heavy FTSE 100 added 1.5 per cent, while the mid-cap FTSE 250 also advanced by about 1.3 per cent.
Amid choppy trading in crude markets, the oil majors diverged somewhat, with BP advancing by 1.7 per cent and Shell dipping by 0.8 per cent.
British banks were among the big winners, with Lloyds adding 1.9 per cent on high volumes and Barclays 2.6 per cent.
Miners also advanced as metal prices jumped. Glencore advanced by 2.2 per cent, and Rio Tinto added 1.3 per cent after receiving a bailout to keep the Boyne aluminium smelter in Australia running until at least 2040 and support its transition to renewable electricity.
New York
Wall Street’s main indexes rose on Wednesday as prospects of a de-escalation in the Middle East conflict allayed some fears around prolonged energy supply disruptions and lifted investor sentiment.
Cruise operators, including Norwegian Cruise Line, gained 2.4 per cent, with the S&P 500 consumer discretionary index up 1 per cent.
Airlines were also higher, with the S&P Composite 1500 Passenger Airlines index up 1 per cent.
US-listed shares of Arm jumped 21 per cent after the company unveiled a new AI data centre chip that is expected to bring billions of dollars in revenue.
Other chipmakers also moved higher with Intel and Marvell Technology up 7 per cent and 6 per cent, respectively, while Nvidia rose 2.5 per cent. The Philadelphia SE Semiconductor index added 1.1 per cent. – Additional reporting: Bloomberg, Reuters
