European shares ended slightly lower on Monday as investors react to further US tariff rhetoric.
Car-makers, considered sensitive to tariffs, were down following further threats of steep tariffs on the European Union, but positive performances by financial and healthcare stocks minimised losses.
Dublin
The Iseq All-Share index underperformed against its European counterparts, closing at 11,255.58, down 0.99 per cent.
The index was weighed down by underperforming big caps with led by the banks amid concerns of the impact of US trade policy on the Irish economy. AIB Group closed down 1.68 per cent to €6.74.
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Bank of Ireland fell 1.36 per cent to close at €11.99, while Permanent TSB closed out a poor day for the banks, falling 0.95 per cent to €2.09.
Ryanair closed the day in the red, falling 1.61 per cent to €23.78 following on from recent record highs as the stock faces resistance approaching the €24 mark.
Traditional defensive stocks, Glanbia and Kerry Group gained on the day, rising 1.26 per cent and 0.17 per cent respectively, but healthcare services group Uniphar went against the grain to fall 1.73 per cent.
It was a largely positive day for the home builders as Cairn Homes rose 1.38 per cent and Ires REIT added 0.98 per cent was spoiled by Glenveagh Properties which lost 0.54 per cent to close at €1.834.
London
The FTSE 100 went against the trend in Europe and closed at a fresh record high. Investors grew hopeful of future interest rate cuts by the Bank of England, while AstraZeneca’s shares gained following positive drug trial results.
The blue-chip FTSE 100 rose 0.6 per cent to close at 8998.06 points, nearing the 9000-points mark, while the domestically oriented FTSE 250 index added 0.5 per cent.
AstraZeneca climbed 2 per cent after the pharmaceutical giant said its experimental drug baxdrostat succeeded in lowering high blood pressure in a late-stage study of people whose condition was hard to control or treat.
Associated British Foods rose 2 per cent after brokerage Panmure Liberum upgraded the retailer’s stock to “buy.”
Among other stocks, Ashmore gained 1.4 per cent after the emerging markets-focused asset manager reported slower quarterly net outflows.
Europe
The pan-European STOXX 600 index closed 0.1 per cent lower. Most regional indexes also declined, except for the UK’s FTSE 100, which rose 0.6 per cent to an all-time high.
The biggest fallers in Europe were automotive stocks, with Germany’s BMW, Volkswagen and Mercedes-Benz all down around 2 per cent each on the growing tariff worries.
Shares of US-exposed spirits makers Pernod Ricard and Remy Cointreau fell 1.2 per cent and 3.4 per cent, respectively.
Helping limit broader losses, euro zone banks climbed 0.5 per cent, with Italian lenders Banco BPM, BPER Banca and Banca Popolare di Sondrio (BPSO) jumping in the range of 5 per cent to 6 per cent.
Germany’s Renk gained 4.3 per cent after brokerage Kepler Cheuvreux raised its rating on the defence contractor to “buy” from “hold”.
At the bottom of the STOXX stood Sweden’s Lifco, slumping 9.3 per cent after the consumer goods conglomerate missed second-quarter pretax profit estimates.
New York
Wall Street traded in choppy waters on in midafternoon trading on Monday as investors shrugged off another round of tariff threats.
After a weekend shrouded by tariff talk, investors barely blinked, having grown numb to Trump’s barrage of tariff threats and his frequent last-minute U-turns.
Investors are also keeping a close watch on tensions between the White House and the US central bank, after economic adviser Kevin Hassett said over the weekend that Trump might have cause to fire Fed chair Jerome Powell, citing cost overruns from the central bank’s headquarters renovation.
While traders have almost fully ruled out a July rate cut, the probability for a September move stands at around 60 per cent, according to CME FedWatch.
Chip stocks came under pressure, with Micron Technology and Intel down. Crypto stocks ticked up after bitcoin topped $120,000 for the first time.
Waters Corp dropped double figures after the lab equipment maker agreed to merge with rival Becton, Dickinson and Company’s Biosciences & Diagnostic Solutions unit in a $17.5 billion deal. – Additional reporting, Reuters.
