European shares finish volatile week on high

European shares rose for a second straight week, buoyed by robust US employment figures and diminishing concerns over trade friction that had previously rattled investor confidence.

The week has been a volatile one for global markets as investors grappled with ever-changing global trade dynamics. US president Donald Trump doubled tariffs on steel and aluminium imports, though the UK received an exemption.

But markets are also monitoring whether the public spat between Mr Trump and Tesla chief executive Elon Musk could spill over into broader markets.

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The Irish Overall Index of shares ended the week slightly higher, adding 0.14 per cent to finish at 11,622. That followed a fresh all-time high reached on Thursday, following the news that the European Central Bank was “getting to the end” of a rates cycle which has seen eight consecutive cuts.

But shares were mixed across the board. While AIB gained over its opening price on Friday, adding 0.2 per cent, Bank of Ireland gave up some of its gains, falling half a per cent. Insurer FBD was flat on the day.

It was a similar story for insulation specialist Kingspan, which shed 1 per cent, closing the week at €75.55. The company’s shares gave up some of the gains made on Thursday after it announced it would increase its planned investment in the US roofing business to $1 billion over the next five years.

Food group Glanbia was 1.1 per cent higher at the close of the session, finishing at €12.64, while Kerry Group was almost 1 per cent lower.

In leisure and travel stocks, hotel group Dalata was 1 per cent lower, while Ryanair added 1.76 per cent to end the week at €24.28.

London

The blue-chip FTSE 100 gained 0.3 per cent, while the more domestically-oriented FTSE 250 ended 0.4 per cent higher. Both indexes clocked firm weekly gains.

On the day, heavyweight banks were among the top gainers, with Standard Chartered up 2.9 per cent, HSBC up 1 per cent and Barclays climbing 1.9 per cent.

Precious metal miners, the best performing FTSE 350 sector this week, lagged on Friday, clocking a 1.8 per cent decline.

Aerospace and defence shares – which jumped earlier this week after Prime Minister Keir Starmer pledged the largest sustained increase in British defence spending since the end of the Cold War – gave some of those gains back, to fall 0.8 per cent.

Europe

The pan-European Stoxx 600 rose 0.3 per cent on Friday, and logged a 0.6 per cent gain for the week.

Market sentiment drew support from the United States’ better-than-expected jobs report and signs of easing in the US-China trade relationship.

Still, the market was also reminded this week of protectionist fervour. The automotive sector, particularly exposed to tariffs on steel and aluminium imports, bore the brunt, shedding 1.8 per cent over the week.

German Chancellor Friedrich Merz indicated he would pursue a deal for duty-free US car imports into Europe in exchange for equivalent tariff waivers on European exports to the United States.

Other bourses such as Germany’s DAX and France’s also recorded a second straight week of gains, while and Spain’s IBEX logged its eight consecutive week of advances – its longest in nearly four months.

On Friday, the financial sector emerged as the standout performer, propelled by UBS, which rose 3.8 per cent after Swiss authorities proposed more stringent rules that could require an additional $26 billion in core capital reserves for the banking giant.

New York

Wall Street rebounded on Friday and US Treasury yields jumped as a generally upbeat employment report and a bounce-back in Tesla shares helped put the indexes on track for weekly advances.

All three major US stock indexes surged from the starting gate with robust gains, while bitcoin jumped and crude prices touched their highest level since late April.

Tesla stock was last up 5.9 per cent.

The Dow Jones Industrial Average rose 485.78 points, or 1.15 per cent, to 42,805.52, the S&P 500 rose 66.69 points, or 1.12 per cent, to 6,005.88 and the Nasdaq Composite rose 252.22 points, or 1.31 per cent, to 19,550.67. – Additional reporting: Reuters