European shares closed sharply lower on Friday after US President Donald Trump ramped up threats of tariffs on the European Union and smartphone giant Apple, reigniting fears of a damaging global trade war.
Dublin
The Irish market ended the week lower, losing half a percentage as the wider uncertainty hit stocks. Banking shares were in the red across the board, with AIB down 1.1 per cent and Bank of Ireland shedding 1.8 per cent. Permanent TSB was 1.4 per cent lower.
Not even the index heavyweights were insulated from the market jitters. Kingspan ended the week at €74.30, a fall of more than 1 per cent, while food group Kerry was 0.4 per cent off the pace. Hotel group Dalata fell 1.75 per cent to €5.61.
On the brighter side of the market, shares in airline Ryanair climbed 0.6 per cent to €23.84, while food group Glanbia added 0.4 per cent to finish the week on €12.23.
London
The FTSE 100 fell on Friday amid a wider stock market sell-off, ending the day down 21.29 points. London’s blue-chip index finished at 8,717.97, a 0.24 per cent fall.
In company news, shares in AJ Bell soared on Friday as it announced a jump in customer numbers and hit a new record amount of assets under administration. Shares rose 8.4 per cent to 495.60p.
Elsewhere, Games Workshop said it was handing out about £20 million to its staff after the maker of the Warhammer game series grew sales and profits over the past year.
The Nottingham-based company said it would make the cash payments, as a share of its profits, “on an equal basis to each member of staff” in recognition of their contribution to its financial performance, which strengthened over the financial year ending on June 1st, it said in an update in advance of the full-year results.
Europe
European luxury shares tanked on Friday amid new tariff moves from the US.
Europe’s luxury industry, producing handbags, shoes, fashion items and champagne among other prized goods, is highly exposed to the US market, which was seen as the sector’s best hope for growth this year as Chinese demand lags.
Shares in LVMH and Hermes, France’s largest listed companies by market capitalisation, fell by around 3 per cent and 4 per cent respectively after Mr Trump’s announcement, in line with sector peers including Kering, Prada and Burberry.
The pan-European STOXX 600 index closed 0.9 per cent lower, and marked a weekly decline, its first in six. The index logged its biggest one-day fall since April 9th.
The STOXX 600 had recovered from its early April slump after trade deals between the US and some trading partners had calmed worries over trade tensions.
On Friday, automobiles and parts, expected to take the biggest hit from tariffs, led broader declines with a 3.1 per cent fall. Economically-sensitive banks shed 1.8 per cent, while an index of luxury goods dropped 2.7 per cent as they are highly exposed to the U.S. market.
Germany’s DAX fell 1.5 per cent after coming within spitting distance of a record high earlier in the day when data had shown that the country’s economy grew significantly more in the first quarter than previously estimated.
New York
Wall Street’s main indices slumped on Friday after Mr Trump’s 50 per cent EU tariff announcement, while Apple tumbled after he also warned it would have to pay tariffs if iPhones were not manufactured in the United States.
Apple touched a two-week low and was down 2.5 per cent after Mr Trump said the iPhone-maker would be subject to 25 per cent tariffs if its phones sold in the US were not made within the country’s borders.
Most megacap and growth stocks dropped, with Amazon and Nvidia declining more than 1 per cent each.
A gauge for semiconductor stocks fell more than 2 per cent, while carriers including American Airlines shed about 2 per cent.
Deckers Outdoor slumped almost 20 per cent after the maker of UGG boots forecast first-quarter net sales below estimates and said it would not provide annual targets.
Sportswear giant Nike also dropped, falling 2.2 per cent. – Additional reporting: Reuters, PA
