A flare-up in geopolitical risks drove stocks and bonds from Tokyo to Wall Street lower as oil jumped after US president Donald Trump said a ceasefire with Iran may be over, sending global crude oil prices soaring by as much as 5 per cent.
Dublin
The Iseq lost 1.3 per cent, broadly in line with its European peers, as index heavyweights retreated.
Ryanair fell by 2.6 per cent to €26.75 per share, part of a wider downward move by European airlines, which are now facing renewed upward pressure on jet fuel prices.
Cairn Homes fell by 2.6 per cent to €2.48 per share, wiping out the modest gains earned on Tuesday after it reported a 60 per cent jump in revenues in the first half of the year in a trading update.
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Rival home builder Glenveagh also faltered, shedding 2.4 per cent to close at €2.48 per share.
Banks were mixed with AIB little changed at €10.33 while Bank of Ireland lost 0.5 per cent to close at €17.57.
London
British shares fell, with the benchmark FTSE 100 index losing 1.8 per cent while the mid-cap FTSE 250 fell by 1.7 per cent.
Most sectors were in the red. Defence stocks were the biggest drag, with Rolls-Royce and Babcock down by more than 3 per cent.
BP and Shell rose by 3.5 per cent and 2.3 per cent, respectively, in line with rising crude oil prices. Other energy stocks advanced, with Harbour Energy jumping by 3.9 per cent and Centrica rising 1.2 per cent.
Aer Lingus owner IAG, meanwhile, dropped 4.8 per cent as investors eyed further jet fuel price increases.
Precious metals miners fell 3.6 per cent as gold prices dropped more than 1 per cent amid renewed concerns about inflation and the prospect of higher interest rates. Antofagasta tumbled by 6.4 per cent, while its peers, Rio Tinto and Anglo American, dipped by 4.9 per cent and 6.3 per cent.
Europe
The blue-chip Stoxx 50 index and the pan-European Stoxx 600 both shed 1.8 per cent as Trump’s comments rekindled fears of higher oil prices.
Spain’s Ibex index tumbled 2.6 per cent after the US president reiterated his threat to cut trade ties with Madrid after refusing to allow the US to use its bases for missions linked to strikes on Iran.
Shares in banking heavyweights Santander and BBVA fell 4.3 per cent and 3 per cent respectively while Zara owner Inditex fell 3.6 per cent and Telefonica lost 1.1 per cent.
Luxury and consumer stocks also lost ground, with Gucci owner Kering down by nearly 5 per cent while Hermes shed 4.2 per cent and LVMH dipped 2.2 per cent.
Higher energy prices also weighed on airlines, including Air France and Wizz Air, which lost 6 per cent and 5 per cent respectively while auto stocks fell 3.3 per cent. Lufthansa dropped 5.4 per cent after Citigroup downgraded the stock to “sell” from “neutral”.
New York
Wall Street’s main indexes fell on Wednesday after Trump’s Iran remarks, while gains in Broadcom gave respite to the recently beaten-down chip stocks.
Broadcom gained 3 per cent after Apple said it plans to spend more than $30 billion as part of a chip-supply agreement reached this week with the chipmaker.
The chip stocks gained on Wednesday after recent volatility, and helped cap losses on the technology-heavy Nasdaq.
The broader Philadelphia SE Semiconductor index rose 1.4 per cent.
Nine of the 11 sectors on the benchmark S&P 500 were trading lower, except for the energy index and information technology.
Energy price-sensitive travel stocks fell as higher oil prices stoked concerns over fuel costs and demand.
United Airlines dropped 3.2 per cent, Southwest Airlines lost 1.1 per cent and Delta Air Lines fell 1.9 per cent.
Cruise operators also slipped, with Carnival down 3 per cent, and Norwegian Cruise Line fell 1.8 per cent. – Additional reporting: Bloomberg and Reuters
