Global stocks had a mixed day on Thursday, with crude prices extending their climb as Iran flaunted its control over the Strait of Hormuz and investors digested a host of varied corporate earnings reports.
All three big US stock indexes were modestly lower, with the S&P 500 and the Nasdaq easing back from the latest in a recent spate of record closing highs, while the pan-European STOXX 600 index inched up.
“Markets are trying to test out how far they can run, before we actually get hard evidence [of an Iran war] resolution, or that Iran is moving towards an actual resolution,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
“We’ve had this incredible rally on the promise and the directional shift towards peace, but at a certain point you need to see more hard evidence.”
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Dublin
Dublin’s Iseq closed about 1 per cent lower, dragged by declines in Ryanair and both AIB and Bank of Ireland.
Ryanair fell 1.6 per cent to €23.48 as oil prices rose again, putting pressure on travel stocks. As jet fuel prices soar in the wake of the Strait of Hormuz closure, airlines are said to be drawing up contingency plans for a deepening crisis, with the possibility of mass flight cancellations.
AIB and Bank of Ireland fell by 2.3 and 1.2 per cent respectively as financials across Europe traded weaker. Home builder Cairn was also weaker, down 1.8 per cent.
Europe
European shares were nominally higher, reversing earlier weakness as investors weighed developments in the Middle East and a wave of corporate results.
The pan-European STOXX 600 index rose 0.1 per cent, while Europe’s broad FTSEurofirst 300 index rose 4.52 points, or 0.18 per cent.
Cosmetics giant L’Oreal reported its fastest quarterly growth in two years, driving its share price up 8 per cent. Nokia rose more than 3 per cent after releasing its quarterly results.
London
Britain’s FTSE 100 closed a little lower on Thursday, with declines in heavyweight financials offset by some stocks after their corporate updates, while markets assessed fading prospects of renewed US-Iran peace negotiations and higher oil prices.
The blue-chip FTSE 100 index closed 0.2 per cent lower in its fourth session of declines.
The travel and leisure sector was buoyed by a 10 per cent gain in Domino’s Pizza after it recorded a first-quarter like-for-like sales growth of 4.5 per cent. Pressured airlines limited gains.
Heavyweight banks Barclays and HSBC fell 1.5 per cent and 0.4 per cent respectively – the biggest drags on the index.
Among miners, Fresnillo declined 6.4 per cent, tracking precious and base metals.
The FTSE 100 is down 2 per cent for the week so far and is on track to erase nearly all gains sparked by hopes of the US–Iran ceasefire, announced earlier this month.
New York
Wall Street’s main indexes were flat on Thursday as investors awaited clear signals on the Iran war, while a batch of mixed earnings reignited concerns about AI-driven disruption across the software sector.
Investors keen to look past war-related risks have shown strong resilience in recent days, but some fatigue has set in, leading to brief episodes of risk aversion, as they await more clarity on how and when the conflict may be resolved.
With oil prices over $100 a barrel, the risk of an inflation flare-up also remains.
Data on Thursday showed that the number of Americans filing claims for unemployment benefits increased only marginally last week, but risks from war-driven higher prices still threaten the economy.
The earnings season has been largely strong so far, but because the results reflect only one month of disruption from the Middle East conflict, some are questioning how dependable they are as a gauge of what lies ahead.
IBM slumped 8 per cent after revenue growth slowed in the first quarter on weakness in its software business.
Tesla shares fell 2.6 per cent after the company raised its spending plan to more than $25 billion for the year.
Lockheed Martin dropped 4.8 per cent after reporting a lower first-quarter profit.
Car-rental company Avis Budget’s shares slumped 46.3 per cent and were on course for their steepest two-day drop ever, after an eye-watering rally that was reminiscent of the “meme-stock” craze.
On the flip side, Texas Instruments surged 18.4 per cent after forecasting second-quarter revenue and profit above Wall Street expectations. – Additional reporting: Reuters
