European shares declined on Wednesday, dragged down in particular by healthcare stocks, as investors awaited tariff plans from US President Donald Trump that some fear could slow global growth and boost inflation.
The pan-European Stoxx 600 index closed 0.5 per cent lower, with Germany’s trade-sensitive DAX falling 0.7 per cent.
Dublin
The Iseq All-Share index managed to end the session 0.2 per cent higher to 10,370.77, helped by advances by some heavyweights, including Ryanair, which rose 0.7 per cent to €19.20, as it rallied from a recent dip, and Kingspan, which added 2.5 per cent.
Banking stocks were out of sorts, with AIB off 0.5 per cent at €6.10 and Bank of Ireland down 0.6 per cent at €11.14, amid mounting concerns about the impact on the domestic economy from Trump’s protectionist policies.
London
Of Irish interest in London, Dublin-based Greencore rose 0.9 per cent as it agreed to buy rival Bakkavor for £1.2 billion (€1.43 billion). Bakkavor gained 7.9 per cent.
Grafton Group was also in focus, rising 0.8 per cent, as it bought HSS Hire Ireland for almost €32 million.
The FTSE 100 index fell 0.3 per cent. Gains in the pound weighed on the export-focused stock index, as the dollar lost ground ahead of the tariff announcement.
Aerospace and Defence stocks led the sectoral declines, down 2.1 per cent
Rolls-Royce and BAE Systems were among the top losers in the FTSE 100 index, down 3 per cent and nearly 1 per cent, respectively.
Heavyweight healthcare firms fell alongside European peers ahead of the tariffs announcement. The pharma and biotech index fell 1.4 per cent to its lowest close in nearly a month.
AstraZeneca was the biggest drag on the blue-chip index, down 1.2 per cent.
Europe
European indexes have been volatile this week in anticipation of the announcement after Mr Trump dampened hopes for more targeted levies.
The Stoxx 600 is hovering around two-month lows and is about 5.1 per cent below its all-time high hit in March.
“There’s no doubt (tariffs) will impact risk appetite. The real question is where the pressure points are,” said Filip Carlsson, quantitative strategist at SEB.
French industry minister Marc Ferracci said Europe would respond to tariffs in a “proportionate manner”, while UK finance minister Rachel Reeves said London would not rush to counter tariffs and risk undermining a possible trade deal.
The healthcare sector fell 1.7 per cent, leading sector declines and dropping to its lowest level this year. Sanofi and Novartis fell about 1.6 per cent each.
Novo Nordisk was the biggest drag on the benchmark index, down 2.6 per cent.
Novo Holdings, the drugmaker’s controlling shareholder, nearly doubled annual income and investment returns to a record €8 billion in 2024, although its total assets under management dropped slightly.
Meanwhile, Svitzer shares soared 30 per cent after Denmark’s AP Moller Holding made a cash offer of 9 billion Danish crowns (€1.2 billion) for the towage and marine service provider.
New York
US stock indexes had recovered from morning losses to trade modestly higher by early afternoon as investors awaited Mr Trump’s sweeping tariff announcements.
Tesla jumped, reversing earlier declines after Politico reported that Mr Trump has told members of his Cabinet and other close contacts that his billionaire ally Elon Musk will soon step back from his government role.
The stock fell as much as 6.4 per cent earlier after the EV maker reported a 13 per cent drop in first-quarter deliveries.
U.S. stocks have come under sharp selling pressure this year due to uncertainty around tariffs and concerns about aggressive artificial intelligence (AI) spending by tech firms. The benchmark S&P 500 and the tech-heavy Nasdaq fell 10 per cent from their record highs last month, confirming a correction.
On the data front, US private payrolls growth accelerated in March and new orders for US-manufactured goods increased solidly in February, likely as businesses front-loaded orders ahead of tariffs.
Focus, however, is on the crucial monthly non-farm payrolls data as well as Federal Reserve Chair Jerome Powell’s speech on Friday for insights into the health of the US economy and trajectory of interest rates. - Additional reporting, Reuters
