Global markets dipped on Tuesday as the US-Iran ceasefire expiration loomed and optimism over peace talks faded.
Dublin
Euronext Dublin finished the day down 1 per cent, with Ryanair the worst performer as it continues to deal with the fallout from the war in the Gulf.
Brent oil traded higher at $98.03 (€83.44) a barrel on Tuesday afternoon, compared to $94.45 at the time of the equities close on Monday.
Shore Capital analyst James Hosie said a continuation of the current tenuous ceasefire appeared the most likely immediate outcome, but he sensed the impact of continued disruption to global oil supplies is being “underestimated” by the market.
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“In our view, this should at least keep spot Brent prices in the $90-100 per barrel range until a robust peace deal is achieved, with any military escalation likely to drive a further price spike,” he said.
Ryanair’s share price has been choppy in recent weeks as oil prices have fluctuated and it finished the day down 2.4 per cent.
Elsewhere, there were mixed fortunes for the banks as AIB ended the day down 0.75 per cent, while Bank of Ireland climbed 0.2 per cent. PTSB was down 0.3 per cent.
Most stocks finished down on the day, largely in line with the index’s overall move. Food ingredients giant Kerry Group sank 0.7 per cent. Glanbia was down 0.75 per cent at close of business.
It was a bad day, too, for Cavan-based insulation specialist Kingspan, which saw its stock fall 1.2 per cent. Home builders Cairn Homes and Glenveagh Properties dipped 0.9 per cent and 0.5 per cent respectively.
London
The FTSE 100 closed down 1.1 per cent after a bright start, amid caution ahead of the soon-to-expire ceasefire between the US and Iran. The FTSE 250 ended 0.1 per cent higher and the AIM All-Share was flat.
Aerospace firms Rolls-Royce and Melrose Industries fell 6.5 per cent and 4.2 per cent, continuing their roller-coaster run amid the Middle East war.
M&G fell 2 per cent as Goldman Sachs downgraded to “neutral” from “buy”, noting shares have risen more than 50 per cent in the last 12 months and outperformed peers over the period.
AB Foods fell 2.7 per cent after confirming plans to demerge its Primark retail business, following a strategic review announced last November.
Elsewhere, Crest Nicholson plunged 35 per cent after it lowered sales and profit expectations for the current financial year and warned of higher debt than forecast.
Europe
The pan-European Stoxx 600 index fell 0.77 per cent, while Europe’s broad FTSEurofirst 300 index fell 0.81 per cent. Elsewhere, the Cac 40 in Paris ended down 1.1 per cent, and the Dax 40 in Frankfurt fell 0.6 per cent.
Meanwhile, euro zone government bond yields edged higher on Tuesday as traders weighed the potential for US-Iranian peace talks.
Germany’s 10-year yield, the benchmark for the euro zone, rose three basis points to 3.0055 per cent. The country’s interest-rate-sensitive two-year yield rose six basis points to 2.5133 per cent, while super-long-dated 30-year yields were flat at 3.5521 per cent.
New York
Wall Street’s main indexes were subdued as renewed concerns about the Middle East war halted an early rally in stocks and overshadowed earnings optimism.
Amazon shares rose 1.8 per cent, helping the S&P 500 consumer discretionary sector advance 0.4 per cent. Energy stocks rose 0.5 per cent, thanks to the jump in crude prices.
GE Aerospace fell 5.8 per cent. The company said it was bracing for a tougher backdrop of elevated oil prices, fuel supply constraints and slower global growth.
Alaska Air fell 3.2 per cent as the airline withdrew its full-year profit forecast.
Apple was among the other stocks under the spotlight, falling 2.2 per cent. The company said CEO Tim Cook would hand over the reins to long-time hardware boss John Ternus. – additional reporting: agencies
