European shares closed lower on Wednesday, dragged by technology and healthcare stocks, while investors remained concerned about impending US tariffs set to take effect next week.
The pan-European Stoxx 600 index ended 0.7 per cent lower, making the index’s fourth decline in five trading sessions.
Dublin
The Iseq All-Share index fell 1 per cent to 10,628.09, with banking stocks among the main decliners. AIB lost almost 4 per cent to €6.37, after Goldman Sachs went about placing about a 3 per cent stake in the lender on behalf of an institutional investors late on Tuesday.
Bank of Ireland closed 2.8 per cent lower at €11.33. PTSB finished down 0.6 per cent at €1.61.
Kenmare Resources closed unchanged at €5.10, as investors looked beyond the company’s latest full-year figures to focus on a potential fresh bid from its former managing director, Michael Carvill, and his Abu Dhabi-based financial backer.
London
UK equities closed higher on Wednesday, buoyed by rising energy stocks, after finance minister Rachel Reeves pushed back government spending plans in a long-anticipated budget update.
Both the blue-chip FTSE 100 and the FTSE 250 index gained 0.3 per cent.
Facing a weak economy that threatened her fiscal targets, Ms Reeves trimmed her government’s spending plans, giving some reassurance to investors. However, the UK budget watchdog halved its forecast for economic growth this year, and hiked forecasts for public borrowing and inflation.
Separate data showed UK inflation slowed by more than expected in February, falling from 3 per cent in January to 2.8 per cent, offering consumers a brief respite. However, economists warned that rising energy prices would push inflation up again soon.
On the day, energy was the best performing sector, up 2 per cent, as oil prices advanced.
Shell was among the top gainers on the blue-chip index, up 2.4 per cent. North Sea oil and gas group Ithaca Energy gained 9.6 per cent after announcing restructuring plans and forecasting higher 2025 production.
Among other stocks, Ocado Group led gains in the midcap index, up 16.3 per cent, after JP Morgan upgraded the online supermarket and technology firm rating to the equivalent of buy.
On the flipside, Vistry fell 7.3 per cent as the home builder skipped a final dividend after profit slump.
Europe
The healthcare subindex slipped to two-month lows, hit by losses in heavyweight Novo Nordisk.
The technology component sank about 2 per cent, dragged by a 6.7 per cent fall in Tietoevry after Morgan Stanley downgraded the IT services firm’s stock to the equivalent of hold.
Among other stocks, CD Projekt slumped by 8 per cent after the Polish video game maker said the premiere of “Witcher 4” was scheduled for after 2026.
Energy stocks were among a few bright spots.
Still, the Stoxx 600 index is on track for its best quarter in two years, primarily on hopes that a historic German fiscal package would spur growth in the region’s largest economy.
New York
Wall Street’s main stock indexes were lower in early afternoon trading, dragged down by megacap stocks, as investors awaited clearer guidance on the Trump administration’s forthcoming tariffs expected to be enacted next week.
In the latest development, a report said US president Donald Trump is readying an announcement on auto levies as soon as Wednesday.
Auto stocks such as Tesla, led by Elon Musk, General Motors and Ford fell.
The uncertainty regarding the scale of US tariffs, the possibility of retaliatory measures from trading partners, and the potential ripple effects on the global economy and businesses have kept investors on edge over the past month.
Further contributing to market unease, Barclays revised its S&P 500 target downward to 5,900 points from 6,600. It is currently hovering around 5,700. Earlier this month, both the S&P 500 and the Nasdaq had tumbled 10 per cent from their respective record highs — a phen–menon known as a correction.
Dollar Tree rose after the discount-retail chain said it is nearing a sale of its Family Dollar business to a consortium of private equity investors for about $1 billion (€930 million).–
GameStop jumped following its board’s unanimous approval to incorporate bitcoin as a treasury reserve asset. – Additional reporting, Reuters
