Global markers fell on Wednesday as oil prices rallied on worries about prolonged disruption in the Middle East while investors were also cautious ahead of financial releases from US technology firms and a Federal Reserve policy update.
Oil prices climbed after US president Donald Trump instructed aides to prepare for an extended blockade of Iran. US crude rose 5.22 per cent to $105.15 (€89.95) a barrel and Brent rose to $117.16 per barrel, up 5.3 per cent on the day.
Dublin
Euronext Dublin bucked the trend as it finished the day up 1.1 per cent after nutrition group Glanbia soared on the back of a positive trading update issued ahead of its annual general meeting.
The Kilkenny-based company was up 9.3 per cent at close of business after it said it expects to post earnings per share growth this year at the “upper end” of the 7 per cent to 11 per cent range it set out in February.
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Food ingredients giant Kerry Group also helped the index as it climbed 1.3 per cent. Cavan-based insulation specialist Kingspan – which is another big hitter on the Iseq – closed up 1.5 per cent.
Among the financial names, AIB and Bank of Ireland finished up 0.6 per cent and 1 per cent respectively ahead of the European Central Bank’s interest rate announcement on Thursday.
London
The FTSE 100 closed 1.2 per cent lower on Wednesday, held back by falls for drugs firms GSK and AstraZeneca. The FTSE 250 ended down 0.9 per cent, but the Aim All-Share rose 0.2 per cent.
GSK fell 6.3 per cent and AstraZeneca dipped 1.5 per cent, despite solid-looking first quarter results and retained guidance.
Housebuilders were on the back foot, as the latest oil price rise raised fears that interest rates may have to be increased to tackle likely inflationary pressures.
Persimmon fell 4.4 per cent, Berkeley Group 3.6 per cent and Barratt Redrow 3 per cent. Kitchen supplier Howden Joinery was down 3.8 per cent, while retailer Next fell 3 per cent on fears of a knock-on effect to retail sales.
Dublin-based DCC led the risers, climbing 9.3 per cent, as it said it is evaluating a bid approach from US investment firms Energy Capital Partners and KKR.
Europe
Euro zone bond yields rose to new multi-week highs as efforts to end the Iran war appeared to be in a stalemate.
Ten-year bond yields, the benchmark for the euro zone, briefly rose as high as 3.1 per cent, their highest since late March, and were last 3 basis points higher at 3.09 per cent.
Rate-sensitive two-year yields touched their highest since April 7th and were last up 6 basis points at 2.7 per cent. They have risen for eight days in a row, which would be their longest stretch of increases since April 2023.
In European equities, the Cac 40 in Paris ended down 0.4 per cent, and Dax 40 in Frankfurt fell 0.3 per cent. The Stoxx Europe 600 fell 0.6 per cent.
New York
Wall Street’s main indexes were subdued as investors trod carefully ahead of several Big Tech earnings reports and a Federal Reserve meeting expected to be the last for Jerome Powell as its chair.
Ten of the main S&P 500 sectors were in the red. With a 1 per cent decline, materials was the biggest decliner.
Healthcare stocks also fell 0.7 per cent. GE Healthcare was the biggest drag on the sector, dropping 12.8 per cent after results.
Among individual stocks, online brokerage Robinhood Markets fell 14 per cent after missing expectations for first-quarter profit, while, elsewhere, coffee giant Starbucks rose 9.7 per cent after raising its annual profit forecast.
Finally, payments-processing firms Visa and Mastercard added 8.9 per cent and 3.8 per cent, respectively, after Visa raised its forecast for full-year earnings. (Additional reporting: Agencies)
