Markets slip amid fresh US tariff talk, but AIB bucks the trend
The latest strain came despite a lack of specifics on how or when either sector would be affected.
Lack of any sign of progress on purported talks between the US and China to reopen trade between the world's two biggest economies also weighed on investor mood.
The dollar is carrying the brunt of the impact as investors have reacted to uncertainty by shifting away from US assets, pushing the euro, yen and Swiss franc higher.
On Tuesday, the dollar index, which measures the greenback against a basket of currencies, including the yen and the euro, fell 0.38pc to 99.43.
The euro was up 0.27pc at $1.1346. Against the Japanese yen, the dollar weakened 0.6pc to 142.84.
The Canadian dollar and sterling also strengthened versus the dollar though the Swiss franc weakened.
The latest falls in equities was orderly and not uniform.
In Dublin, the Iseq 20 index of leading shares closed down but AIB ended the session up on Tuesday and above €6 each, edging towards the territory of a putative directed buyback of €1.2bn of State-owned stock. But the shares were unusually volatile – bouncing from a low for the day of €5.87 and a high of €6.155. That repeated a pattern of big intra-day swings seen last week, with similar daily highs and daily lows recorded on Friday and Thursday.
The bank's board will decide by on Thursday whether to go ahead with the buyback at a minimum of €6.26 a share after shareholders overwhelmingly approved the proposal last week despite a yawning gap between the trading price of the stock and the level the deal was struck.
AIB must determine the plan is in the bank's best interests, including pricing, if it is to press ahead with the deal. The closer the stock is to the €6.26 level the more likely the board is to be comfortable with pressing go on the deal.
In London, shares in BP rose after a Bloomberg report on Monday that Shell is working with advisers to evaluate a potential acquisition of its UK rival.
The London Stock Exchange was closed on Monday due to a bank holiday.
The takeover report suggested Shell has discussed the feasibility and merits of a BP takeover with advisers in recent weeks, although it's waiting for further stock and oil price declines before deciding whether to pursue a bid.
A combination of Shell and BP would be one of the oil industry's largest-ever takeovers, bringing together iconic British majors and long time rivals.
BP is vulnerable to a takeover after its shares have lost almost a third of their value in the last 12 months as a turnaround plan has fallen flat with investors and oil prices tumbled.
BP has been battling prolonged underperformance stemming in large part from a net-zero strategy embraced by former CEO Bernard Looney. His successor, Murray Auchincloss, announced a reset in February that included a pivot back to oil, cuts to quarterly share buybacks and promises to sell assets.
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Irish Times
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Join our Dublin Live breaking news service on WhatsApp. Click this link to receive your daily dose of Dublin Live content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice. For all the latest news from Dublin and surrounding areas visit our homepage.
