Global shares rallied to their highest levels in more than a month on Wednesday as investors rushed to buy following the announcement of a two-week ceasefire between the US, Israel and Iran.
Oil fell the most in almost six years on the ceasefire proposal, which revived risk sentiment across global markets.
Dublin
Led by Ryanair, the Iseq index jumped by more than 6.2 per cent. The airline surged 10.6 per cent to €26.80 per share amid a fall in oil prices, which lifted recently battered airline stocks across Europe.
Euronext Dublin was a sea of green with all sectors performing well. Banking stocks advanced, with Bank of Ireland and AIB adding 5.3 per cent and 4.8 per cent to close at €16.33 and €9.38 respectively.
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Other index heavy-hitters also moved higher. Kerry Group added 1.3 per cent to €68.60, while Kingspan climbed to €77.9 per share, up by more than 8.7 per cent.
Listed home builders Cairn Homes and Glenveagh also added 5.4 per cent and 4.4 per cent respectively.
London
Britain’s benchmark FTSE 100 index rallied 2.5 per cent to a one-month high, while the domestic-focused FTSE 250 jumped by more than 4 per cent.
Heavyweight oil companies, including BP and Shell, dropped 5.8 per cent and 4.7 per cent, respectively, tracking a double-digit plunge in crude prices.
All the other big FTSE 350 subsectors rose, led by rate-sensitive home builders, banks and travel companies. EasyJet and TUI jumped more than 10 per cent as travel and tourism stocks regathered some lost momentum.
Meanwhile, British telecoms firm Gamma Communications jumped more than 16 per cent after it said it was in preliminary discussions with several parties for a potential sale.
Europe
European stocks soared the most in more than four years, with the blue-chip Stoxx 50 index up 5 per cent by the close, while the pan-European Stoxx 600 added 3.9 per cent.
“Investors are looking to play a shift in market sentiment and buy everything that’s been beaten up in recent weeks and sell what’s done well,” said Dan Coatsworth, head of markets at AJ Bell.
Spanish and Italian banks gained, with Intesa Sanpaolo rising by more than 5 per cent, and Santander and BBVA up by more than 6.5 per cent.
Infineon and rival chipmaker ASML also advanced, adding more than 11 per cent and 8.4 per cent, respectively.
Close Brothers Group shares surged 13 per cent after the specialised lender said it was adequately covered against the estimated cost related to the settlement over mis-selling of car loans.
New York
All of Wall Street’s big indices were caught in Wednesday’s upswell of optimism, with the S&P 500 rising 2.5 per cent, the Nasdaq Composite up 3.1 per cent and the Dow Jones Industrial Average up 2.6 per cent.
Wall Street’s so-called fear gauge – the Vix – hit pre-war levels. Airlines, which had been pummeled by worries about skyrocketing fuel prices, soared.
Delta Air Lines advanced by more than 6 per cent after reporting first-quarter revenue and earnings that exceeded analyst expectations. However, the carrier said it expects to incur more than $2 billion in higher fuel costs through June because of the Iran war, prompting it to tread carefully and stick to its previous full-year profit forecast.
Other travel-linked stocks also jumped, with Southwest Airlines and United Airlines advancing 7.2 per cent and 9.8 per cent, respectively.
The S&P 500 energy sector was the only one in the red, down almost 4.6 per cent. Exxon Mobil and Chevron dropped 5.6 per cent each, and Occidental Petroleum lost 6.4 per cent.
Investors are awaiting domestic inflation readings, expected later this week, to gauge whether the elevated crude prices during the war have added to price pressures. – Additional reporting: Bloomberg, Reuters
