European shares ended flat on Tuesday as investors stayed cautious going into the US Federal Reserve’s two-day policy meeting.
Plans announced by Google to launch artificial intelligence-powered glasses led to Ray-Ban owner EssilorLuxottica slumping, but Warner Bros shares are on the rise amid the bidding war between Netflix and Paramount.
Dublin
The Iseq All-Share index ended the session down 0.2 per cent to 12,745.32.
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The banks went against the index to gain, individually and sectorally. Permanent TSB led the sector and the index, gaining 1.02 per cent to reach €2.98, while Bank of Ireland added 0.69 per cent to reach €16.12. AIB rounded out the winners on the day, with a 0.57 per cent gain.
Despite a strong day from financial stocks, the index was dragged down by a number of major components.
Ryanair ended down 0.57 per cent. Fellow travel stock, Irish Ferries brand owner Irish Continental Group, entered choppy waters, dropping 1.33 per cent to below the €6 mark.
Shares in Glanbia rebounded slightly from strong early losses to close down 0.74 per cent to stand at €14.71, while titanium minerals miner Kenmare Resources was the biggest weight on the index, falling 3.45 per cent – though on low trading volumes.
London
The FTSE 100 closed the session down 0.03 per cent, while the domestically oriented FTSE 250 index dipped 0.1 per cent.
Defence stocks were trading higher across Europe after Bloomberg News reported that German lawmakers are set to approve defence contracts worth a record 52 billion euros next week. Shares of BAE Systems rose 2.1 per cent, while Rolls-Royce added 0.4 per cent.
Global investors were mostly cautious in advance of the Federal Reserve’s monetary policy decision on Wednesday, with traders mostly betting a 25 basis point rate cut following mixed economic data and dovish comments from some Fed officials in recent days.
Gold and silver prices climbed in advance of the decision, pushing the FTSE 350 index of precious-metal miners up almost 2 per cent.
Shell dipped 0.6 per cent after Bloomberg reported that the oil major sought a buyer for a 20 per cent stake in its Brazilian oilfield cluster to help fund a multibillion-dollar offshore development.
Man Group rose 3.9 per cent after J.P. Morgan upgraded the hedge fund to “overweight” from “neutral.”
Europe
The pan-European Stoxx 600 closed little changed, down just 0.1 per cent. Regional benchmarks were mixed, with Germany’s DAX up 0.5 per cent and France’s CAC-40 down 0.7 per cent.
Ray-Ban maker EssilorLuxottica dropped 5.6 per cent – on track for its worst day since April 3 – after Google said it would launch artificial intelligence-enabled glasses in 2026 with Warby Parker.
The news weighed on other luxury stocks, including Kering and LVMH, which fell 2 per cent and 1.4 per cent, respectively. The broader luxury index led sectoral losses with a 1.8 per cent decline.
Insurers were the biggest gainers, up 1.3 per cent, while banks advanced 0.8 per cent.
Defence stocks climbed after Bloomberg News reported that German lawmakers are set to approve procurement contracts worth a record 52 billion euros ($60.5 billion) next week. Rheinmetall, RENK and Hensoldt gained between 3.6 per cent and 5.9 per cent, lifting the sector index 0.9 per cent.
New York
Wall Street’s main stock indexes was up marginally in midafternoon trading on Tuesday, with an imminent interest rate cut by the Federal Reserve priced in, while investors assessed the future of US artificial intelligence (AI) chip exports to China.
Nvidia’s shares were fell marginally despite rising nearly 2 per cent in premarket trading amid Sino-US trading rhetoric over AI processor chips. Advanced Micro Devices and Intel were also subdued despite Mr Trump saying that a similar approach would apply to other semiconductor companies.
Traders also kept an eye on a bidding war between Paramount Skydance and Netflix over Warner Bros that has lifted shares of the iconic Hollywood studio by double digits in the past two sessions. Warner Bros shares on Tuesday. – Additional reporting, Reuters, PA.
