European shares fell on Friday but posted a modest gain for the week, illustrating the conflicting signals from the Middle East that investors have had to grapple with.
The pan-European Stoxx 600 index dropped 0.9 per cent on the day and was last trading at 575.37, with most sectors in the red. Still, the index gained 0.4 per cent for the week.
US president Donald Trump has given Iran another 10 days to reopen the Strait of Hormuz or face the destruction of its energy plants, after Iran rejected his proposals to end the war he launched together with Israel.
The postponement did not calm markets as investors were sceptical about the two sides reaching an agreement. Oil prices gained more than 2 per cent.
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DUBLIN
The Iseq All-Share index dipped 0.4 per cent to 11,975.29, leaving the index down 8.6 per cent so far this year.
Banking stocks were out of sorts, with AIB off 0.4 per cent at €8.57 and Bank of Ireland down 1.7 per cent at €15.39.
Housebuilders were also lower, with Cairn Homes down 1.2 per cent at €2.09 and Glenveagh Properties slipping 0.9 per cent to €1.94.
Hostelworld rose more than 12 per cent as it continued to glean interest after the hostel booking company reported a strong set of results on Thursday.
LONDON
The blue-chip FTSE 100 index closed 0.05 per cent lower, while the midcap FTSE 250 fell 1.5 per cent, leaving both indexes on track for steep monthly losses.
Most subsectors traded in the red, except healthcare that rose 2 per cent. Positive late-stage trial results for AstraZeneca’s experimental respiratory treatment sent the drugmaker’s shares up 3.4 per cent.
Precious metal miners also boosted the benchmark index as gold jumped over 3 per cent on dip-buying after a pullback earlier this week.
The UK government and the Bank of England say it is too soon to judge the economic hit from the Iran war, but the first strains are appearing and are likely to ring alarm bells for policymakers whose response options are more limited than in past crises.
British consumer sentiment fell to its lowest level in nearly a year in March, a closely watched monthly survey showed, as concerns over the economic fallout from the Iran war and the prospect of sharp price rises kept households on edge.
Lloyds Banking Group fell 2 per cent after the UK Treasury Committee said an IT glitch earlier this month exposed personal data of nearly half a million bank customers.
EUROPE
Worries about a potential surge in inflation have lifted bets for an April rate hike by the European Central Bank to 57 per cent, according to LSEG-compiled data. Prior to the war, investors were largely expecting the central bank to hold rates through the year.
Among individual stocks, Dino tanked 16 per cent after the Polish food retailer flagged that 2025 sales rose at a slower rate, partly due to uncertainty among consumers.
Pernod Ricard advanced 8 per cent after the spirit maker said it is in discussions for a possible merger with Jack Daniel’s owner Brown-Forman.
Media stocks fell 2.7 per cent, dragged down by a 23 per cent drop in shares of German leisure-events ticketing group CTS Eventim following its disappointing forecast for the year.
NEW YORK
The S&P 500 and the Nasdaq had dropped to their lowest levels in more than six months by early afternoon on Friday, with technology stocks leading declines, as the month-long Middle East war weighed on investor sentiment.
Declines by Alphabet and Meta Platforms’ shares weighed on the S&P 500 communication services index.
“Certain components of the market have been hit really hard. And a lot of that has to do with the fact that we’re not sure who’s a beneficiary from AI and who is going to be consumed by AI,” said Mann.
Cruise-operator Carnival was down after cutting its annual adjusted profit forecast.
US consumer sentiment eased to a three-month low in March, raising concerns about the economy due to the Middle East war.
Unity Software’s shares jumped after the maker of video game software reported first-quarter preliminary revenue above analysts’ estimates.
- Additional reporting, Reuters
