Healthcare sector aids slight rise in European stocks

European shares closed higher in a volatile session as the market responded to the news of a 0.3 per cent drop in US first quarter gross domestic product of 2025 and corporate earnings.

The pan-European STOXX 600 index closed 0.3 per cent higher on Wednesday, aided by a 1.3 per cent rise in healthcare stocks.

Dublin

In a mixed session, the Iseq All-Share index ended the session down 0.04 per cent at 10,373.46.

Glanbia was the biggest mover of the day on the Irish stock exchange, rising 12.65 per cent to a price of €11.40, following news that the company’s first quarter results were better than expected.

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The banking sector saw mixed movement, Bank of Ireland Group saw its share price drop by 3.41 per cent to €10.32; AIB Group also saw its share price drop, though to a lesser degree, by 0.76 per cent to €5.91. Permanent TSB, however, bucked the trend with a 3.33 per cent rise to €1.55 – the day’s second leap.

The property sector had a more positive day, with Cairn Homes rising 1.79 per cent to €1.94; Glenveagh Properties making a 1.35 per cent jump to €1,65; and Irish Residential Properties REIT plc recording a minor jump to 0.39 per cent to round out the day.

Building materials company, Kingspan fell to €74.3, a 1.46 per cent drop.

London

The FTSE 100, London’s blue-chip index ended the day just in the green, rising just under five points to finish the day at 8,468, a 0.1 per cent rise.

The UK market slumped during the afternoon after the news of a 0.3 per cent fall in US gross domestic product (GDP) for the first three months of 2025, before eventually clawing back the losses.

In banking, Barclays’ profits surged by nearly a fifth thanks to a boom in trading activity sparked by the US trade war but shares in the group fell by 1.4 per cent.

The company reported a better-than-expected 19 per cent rise in pretax profits but it also said it set aside more cash for bad debts due to worries over the American economy.

Drugmaker GSK (GlaxoSmithKline) said it is “well positioned” to cope with any financial impact from changes to US tariff rules, reporting a rise in sales and shares rose 3.7 per cent.

Europe

The European benchmark index marked its second consecutive monthly drop, however, falling 1.3 per cent. Energy was the worst-performing subindex for April, down 10.2 per cent, as the uncertainty around global growth eroded the outlook for oil demand.

The STOXX 600 has recouped more than half of its losses after tumbling nearly 18% from record highs earlier this month, on signs of the White House’s willingness to ease trade tensions.

Société Générale rose 3.7 per cent after the French bank reported stronger-than-expected first-quarter earnings.

Danish logistics group DSV advanced nearly 7.8 per cent after it completed a deal to acquire Germany’s Schenker and provided an outlook on potential benefits from the transaction.

On the downside, Glencore fell 7.3 per cent after the miner and trader reported a 30 per cent drop in copper production in the first quarter.

Evolution slumped 19.3 per cent, the worst individual performer on STOXX 600, as the Swedish gaming technology company reported its first-quarter earnings below estimates.

German carmakers Mercedes and Volkswagen suspended and cut guidance amidst uncertainty over U.S. tariffs. Their shares were down 2.7 per cent each.

New York

Wall Street’s main indexes were lower in early afternoon trading after data showed the economy contracted for the first time in three years in the first quarter, deepening concerns around the impact of U.S. tariffs and the global trade war.

The Commerce Department’s advance gross domestic product report took centre stage on a data-packed day, showing a 0.3 per cent contraction for the first quarter, compared with expectations for 0.3% growth according to economists polled by Reuters.

Declines were broad-based, with most S&P 500 sectors in the red and the energy index leading losses with a 3% drop. The economically sensitive small-cap Russell 2000 fell 1.3%.

Meanwhile, “Magnificent Seven” members Meta Platforms and Microsoft fell 2.6% and 0.9% ahead of their results, due after markets close, that investors are watching closely for clarity on the outlook for the tech sector and AI-focused investments.

Fanning concerns about a pullback in investments into AI, Super Micro Computer cut its third-quarter forecasts due to delays in customer spending, while Snapchat parent Snap said it would not provide a second-quarter financial forecast. Their shares fell nearly 15 per cent each. – Additional reporting, Reuters, PA.