European shares wavered on Monday as optimism over a framework trade agreement between the EU and the US gave way to anxiety about the reality of tariffs and their impact on the continent’s exporters.
DUBLIN
The Iseq index ended the session up by 0.3 per cent, outperforming its European peers.
Ryanair was among the big gainers, advancing by close to 1.2 per cent to €25.54 per share amid recent positive commentary.
Banking stocks remained in focus as the three main Irish lenders prepare to report this week. On high volumes, AIB jumped by 0.6 per cent to €6.84 per share while Bank of Ireland slid by 0.4 per cent to €12.55 per share and PTSB shed 2.8 per cent to close at €2.05.
READ MORE
Home builders were weaker again, with Cairn Homes sliding 2.5 per cent to €2.12 and Glenveagh inching 0.2 per cent lower to €1.85 per share.
LONDON
The benchmark FTSE 100 index dipped by 0.5 per cent and the mid-cap FTSE 250 fell by almost 0.8 per cent.
With global crude prices jumping after Mr Trump’s trade deal with the EU was announced, oil majors Shell and BP were among the biggest gainers on the session, adding 0.6 per cent and 2.2 per cent.
Property stocks also jumped, with Rightmove advancing by 1.4 per cent after posting strong first-half results, while investment trust Segro added 0.5 per cent.
Industrial miners were weaker amid a fall in metal prices, with Rio Tinto and Anglo American down 1.2 per cent and 1.4 per cent, and Glencore down by 0.5 per cent.
EUROPE
European shares edged lower as markets digested the details of the EU-US trade deal framework. The agreement averts further trade conflict between the two trading superpowers in the short term, but its lopsided nature has raised concerns about the likely effect of US tariffs on European companies and economic growth.
After rallying early on news of the trade deal, the blue-chip Stoxx 50 and the pan-European Stoxx 600 finished 0.3 per cent and 0.2 per cent lower.
European automakers, now facing the reality of 15 per cent tariffs on their exports to the US, dropped throughout the session. Volkswagen and BMW dropped by 3.7 per cent and 3.5 per cent, while Stellantis shed almost 3 per cent.
With steep duties to be levied against US imports of alcohol, Jameson-owner Pernod Ricard slid 3.3 per cent, while drinks giant Anheuser Busch sank by 3.7 per cent.
Pharmaceutical stocks, meanwhile, edged higher with Sanofi, GSK and Novartis all up by between 0.4 per cent and 0.6 per cent. “It’s definitely better than 200 per cent. Most had 25 per cent factored. But I don’t think anyone believes it until it’s signed,” an industry source told Reuters, referring to previous threats from US president Donald Trump to tax pharmaceutical imports.
NEW YORK
Wall Street kicked off a busy week with the dollar rallying following Mr Trump’s deal with the EU.
The US and China also kicked off two days of talks aimed at extending their tariff truce beyond a mid-August deadline and hashing out ways to maintain trade ties while safeguarding economic security.
In advance of a highly anticipated Federal Reserve decision on interest rates on Thursday, the Nasdaq 100 was up 0.4 per cent while the Dow Jones Industrial Average and the S&P 500 were little changed.
Nike rose 2.1 per cent after JP Morgan upgraded the stock to “overweight” from “neutral” and said investors should “just buy it”.
Tech stocks were up in advance of a crucial test over the coming days as “Magnificent Seven” heavyweights Meta, Microsoft, Amazon, and Apple prepare to report their earnings. – Additional reporting: Bloomberg, Reuters
