European shares closed higher on Thursday, driven by car markers and materials stocks as investors responded to mixed earnings reports and the latest developments on US trade policy.
The pan-European STOXX 600 index erased earlier losses to close 0.4 per cent higher. Leading the gains was an index of automobiles and parts with a 1.9 per cent jump.
DUBLIN
The Iseq All-Share index ended the session down 1.35 per cent at 10,131.81.
Glanbia rose 0.20 per cent to 10.18, following news that an activist investor has written to the board of Tirlán Co-operative Society, the nutrition group’s largest shareholder, in a bid to enlist support for a campaign for the business to carry out a strategic review after a share price slump.
Irish banking saw a slump after European Central Bank (ECB) policymaker Olli Rehn said it could not rule out a larger interest rate cut. AIB was down 3.2 per cent to €5.70, and Bank of Ireland fell 2 per cent to €10.45.
Ryanair fell 1.23 per cent to €20.11 amid general uncertainty in the sector. Building materials company, Kingspan fell to €71.45, a 1.31 per cent drop from last close, and Kerry Group fell 0.54 per cent.
LONDON
The FTSE 100 rose to its highest closing price for three weeks, finishing up by 0.05 per cent to 8,407.44.
London’s top financial index spent most of the day in negative territory during a cautious session. Worries about the banking sector dragged on the FTSE but it was ultimately supported by gains across oil majors Shell and BP.
In retail, shares in Asos finished up 2.1 per cent after the fast fashion group cheered early signs that its overhaul is working despite the looming potential impact of US tariffs.
Elsewhere, Marks & Spencer closed down 1.3 per cent after it said it is still battling a cyber incident that hit contactless payments and click and collect orders. Customers have reported issues making some payments and delays to orders since last weekend.
Car distribution firm Inchcape was another notable faller after it cautioned that supply from some manufacturers could be impacted by new US tariff plans and revealed a slump in sales. The London-listed company saw shares slip 6.8 per cent.
EUROPE
The European benchmark has recovered over half of its losses from its near 18 per cent drop from record highs earlier this month after Mr Trump’s import tariffs triggered fears of a global recession.
The driving force of the Stoxx 600 index was the automobile industry with French carmaker Renault advancing 4.4 per cent after reporting a small rise in first-quarter revenue.
The basic resources index added 1 per cent, making its fourth straight session of gains on the back of elevated copper prices despite US tariff-related uncertainties but banks limited overall gains, falling 1 per cent.
Finnish telecom firm Nokia slide 9.4 per cent after the company missed first-quarter profit expectations.
Shares in Adidas rose 2.9 per cent after the German sportswear and apparel maker reported first-quarter sales and profit above expectations.
Belimo jumped 12.4 per cent – the top individual gainer for the day – after the heating and ventilation solutions maker upgraded its 2025 guidance for revenue growth.
The German government cut its economic growth forecast and said it sees stagnation in 2025 instead of a 0.3 per cent expansion. The German Ifo index data showed a surprise improvement in business morale in Europe’s biggest economy for April, a day after dour PMI readings for the euro zone and Britain.
NEW YORK
Wall Street’s main indexes were higher in early afternoon trading, as investors welcomed a handful of positive corporate earnings and signs that the US was open to de-escalating its trade war with China.
Better than expected quarterly results left software firm ServiceNow and toymaker Hasbro atop the S&P 500 in the early afternoon.
About 73.9 per cent of the 157 companies in the S&P 500 that have reported first-quarter earnings to date have exceeded analyst expectations even amid tariff uncertainty, as per data compiled by LSEG.
Markets are also reacting to US Treasury secretary Scott Bessent’s comments that the current levies the world’s two largest economies have slapped on each others’ goods were “unsustainable”, a day after reports said the White House was considering slashing Beijing tariffs.
Procter & Gamble fell after cutting its annual profit forecast, while Alaska Airlines slumped as it, along with several other airlines, withdrew financial forecasts.
Alphabet rose ahead of its results which is expected after markets close. – Additional reporting, Reuters, PA.
