European shares dipped on Thursday, after four sessions of gains, as investors booked some profits and assessed interest rate decisions by major central banks across the continent.
The pan-European Stoxx 600 index closed 0.4 per cent lower.
The US Federal Reserve held rates the previous day but lowered its economic growth outlook for this year and raised inflation projections due to higher uncertainty from US president Donald Trump’s trade tariffs.
European Central Bank president Christine Lagarde said a 25 per cent tariff imposed by the US would lower euro zone growth by 0.3 percentage points in the first year, while retaliatory measures could increase this to about half a percentage point.
The Bank of England kept interest rates unchanged and warned against expectations of future cuts given an increasingly uncertain economic outlook.
DUBLIN
The Iseq All-Share index declined by 1.2 per cent to 10,989.77. Bank of Ireland lost 3.4 per cent to €11.55, while AIB declined by 3.5 per cent to €6.52 – in line with a selloff across the wider European banking sector.
Housebuilders, which had been in demand on Thursday, handed back some of their gains, with Cairn Homes drifting 0.5 per cent lower and Glenveagh Properties falling 1.6 per cent.
Corre Energy, the beleaguered renewable energy storage solutions developer, was unchanged at 9 cents – though down 89 per cent over the past 12 months – as shareholders in the company backed a resolution for it to delist by a majority of 99.98 per cent.
Ires Reit advanced 3.3 per cent to 94c after the company confirmed it was proceeding with a small share buyback programme, amounting to as much as €5 million.
LONDON
The FTSE 100 closed little changed.
HSBC Holdings lost 2.2 per cent. A report said the bank is in advanced talks to sell its German fund administration business to BlackFin Capital Partners.
Leading sectoral declines, defence stocks fell 2 per cent, as did European defense shares, with an analyst pointing to profit-taking after strong gains.
3i Group slipped 3.3 per cent after the investment firm reported its portfolio company Action’s year-to-date like-for-like sales.
Wealth Manager Investec fell 5.4 per cent, dragging down the midcap index, after its annual profit forecast disappointed investors.
EUROPE
European banks dropped 2.2 per cent, as did automobiles and parts. The banks index had hit a record high on Wednesday.
The continent-wide aerospace and defence index fell 2 per cent, giving back recent gains on optimism around Germany’s fiscal reforms, set to be presented to the upper house of the parliament on Friday.
Among stocks, Sodexo dropped over 17 per cent after the French food caterer lowered its 2025 outlook.
Commerzbank fell 3.3 per cent – chief executive Bettina Orlopp said the lender has not had talks with UniCredit since the ECB’s approval for taking a stake of just under 30 per cent last week.
Swiss watchmakers Richemont and Swatch Group fell 2.9 per cent and 4.2 per cent, respectively, after data showed Swiss watch exports fell in February.
Lanxess fell 5 per cent after the German chemicals maker said it expected full-year 2025 earnings to be impacted by slow economic growth and a high likelihood of politically triggered economic turbulence.
NEW YORK
US stock indexes were ahead in early afternoon trading, extending gains from Wednesday, as investors continued to digest the Federal Reserve outlook on rates amid persistent tariff worries.
It follows a large sell-off in recent weeks due to the uncertainty tied to president Donald Trump’s trade policies.
Growth stocks including Meta, Nvidia and Amazon, which bore the brunt of the recent market rout, gained.
On the data front, initial jobless claims were largely in line with estimates in the week prior.
Darden Restaurants was the latest US company to issue cautious forecasts as a fallout of tariff uncertainty. Still, its shares rose the Olive Garden owner forecast quarterly sales above estimates.
Accenture fell after the consultancy firm said the Trump administration’s efforts to reduce federal spending have led to delays and cancellations of new contracts. – Additional reporting: Reuters
