Latest news with #EuropeanShares
Irish Times
5 days ago
- Business
- Irish Times
European shares close lower as investors eye EU-US trade talks
European shares closed lower on Friday, as investors assessed mixed corporate earnings while awaiting updates on a framework of an EU-US trade deal that officials said could be reached as early as this weekend. Investors navigated the peaks and troughs around a potential agreement between the two large economies after a busy week of trade discussions with the US culminated in deals with Japan, Indonesia, and the Philippines. The pan-European Stoxx 600 index dropped 0.6 per cent to session lows after US president Donald Trump said there was less chance of an agreement with the European Union (EU), but pared losses after EU diplomats reiterated that a deal of 15 per cent duties on European goods was still in the works. The index closed 0.2 per cent lower. Dublin READ MORE The Iseq All-Share index ended the session up just 0.03 per cent at 11,584.58. Banking stocks were in focus as investors positioned themselves in advance of interim results from the three players next week. AIB edged 0.1 per cent higher to €6.80, while Bank of Ireland rose 0.4 per cent to €12.61, and PTSB jumped 2.9 per cent to €2.11. Housebuilders were weaker, however, with Cairn off 0.2 per cent at €2.18 and Glenveagh falling 0.1 per cent to €1.86. Ryanair rose 0.8 per cent to €2.11 amid positive broker comment from Barclays, which reiterated its buy rating on the stock. London The UK's FTSE 100 closed 0.2 per cent lower but extended its winning streak to a fifth week, while investors assessed a mixed bag of corporate earnings and eyed the EU-US trade talks. The benchmark registered a weekly gain of 1.4 per cent. Construction and materials stocks led the sectoral decline, falling 1.8 per cent, dragged down by Marshalls, which tumbled 20.6 per cent, on downbeat full-year adjusted pre-tax profit forecast. In corporate updates, NatWest rose 3.5 per cent after the lender said its profit increased by 18 per cent in the first half and the company announced a new share buyback worth £750 million (€858 billion). Wizz Air jumped 11.5 per cent after Barclays upgraded the budget carrier to the equivalent of a buy. Close Brothers surged 4.9% per cent after announcing the sale of its execution services and securities business, Winterflood, £103.9 million. Europe Puma was the biggest percentage loser on the benchmark index, falling 16 per cent, its largest daily drop in more than four months. The sportswear brand cut its full-year outlook and reported weaker-than-expected quarterly results. LVMH gained 3.9 per cent after the French luxury group reported quarterly results, with analysts pointing to hopes on the horizon as the group said it saw signs of recovery in the Chinese market. The broader luxury index rose 1.8 per cent and was the top sectoral performer. Automobile stocks gained 1.4 per cent, boosted by Volkswagen's 4.6 per cent rise after the CEO of Europe's biggest carmaker said cost cuts must be accelerated in response to tariffs. Earlier in the session, shares took a hit on the company's slashed full-year sales and profit margin forecasts. Carrefour gained 5.5 per cent after Europe's biggest food retailer reported its half-year results. New York Wall Street and the dollar were firmer in early afternoon trading as investors girded themselves for the week ahead, which includes a Federal Reserve policy meeting, crucial corporate results and Mr Trump's August 1 deadline for negotiating trade deals. Gold lost some shine, pressured by the dollar as healthy risk appetites lured investors away from the safe-haven metal. More than a third of the companies in the S&P 500 have posted results, 80 per cent of which have beaten estimates, according to LSEG data. Four members of the Magnificent 7 group of Artificial Intelligence-related megacap stocks – Amazon, Apple, Meta and Microsoft are on next week's earnings docket, and market participants will scrutinise the companies' conference calls for signs that AI expenditures are beginning to pay off and whether tariff-related uncertainties continue to weigh on forward guidance. – Additional reporting, Reuters
Reuters
6 days ago
- Business
- Reuters
European shares hit 6-week high on US trade deal optimism, earnings boost
July 24 (Reuters) - European shares scaled a six-week high on Thursday, helped by upbeat results from the likes of Deutsche Bank and BNP Paribas, and optimism surrounding the EU-U.S. trade agreement, ahead of a European Central Bank meeting. The pan-European STOXX 600 index (.STOXX), opens new tab gained 0.5% by 0817 GMT after hitting its highest since June 11 in early trading. Most regional bourses were in the green, with Germany's blue-chip DAX (.GDAXI), opens new tab adding 0.9% and the UK's FTSE 100 (.FTSE), opens new tab advancing 0.6% to an all-time peak, on pace for a sixth straight session of gains. In a busy day for corporate results, banks were in a bright spot after second-quarter profit beat from Deutsche Bank ( opens new tab and BNP Paribas ( opens new tab. The German lender Deutsche Bank climbed 5.8%, while French bank BNP Paribas added 2.8%. The eurozone banks index (.SX7E), opens new tab rose to its highest since 2008, aided by a rise in government bond yields. The anticipated trade deal between the U.S. and European Union would impose a broad 15% tariff on imports from the bloc, avoiding a harsher 30% levy planned from August 1, two EU diplomats said on Wednesday. "15% is a good number ... this would imply a meaningless price increase for companies which are exporting to the U.S. This could be totally manageable for the whole supply chain in different industrial sectors and clearly could be potentially also absorbed by the final customers," said Simone Ragazzi, portfolio manager at Algebris Investments. The move would follow Japan's trade deal with the U.S. that lowered auto tariffs and sent automobile shares soaring on Wednesday. Cooling trade tensions have lifted the STOXX 600 about 19% from its lows in April after U.S. President Donald Trump slapped steep tariffs on its trading partners. The index still remains about 2% away from its March historic high. Roche (ROG.S), opens new tab gained 0.8% after the Swiss drugmaker reported better-than-expected first-half operating profit, while Deutsche Telekom rose 3% after its U.S. subsidiary T-Mobile posted strong second-quarter . Both were among the major boosts to the benchmark STOXX 600. Meanwhile, Nestle (NESN.S), opens new tab dropped 3.4% after the Swiss consumer major announced a strategic review of its vitamins business and posted first-half results. Chipmaker STMicro ( opens new tab slumped 10.5% after its first quarterly loss in more than a decade, in contrast to other tech titans Alphabet (GOOGL.O), opens new tab and SK beating earnings expectations. Adding to the upbeat mood, a latest survey showed euro zone business activity accelerated faster than forecast this month, supported by a solid improvement in the bloc's dominant services industry and with manufacturing showing further signs of recovery. Later in the day, focus will shift to the ECB, which is widely expected to keep rates steady at 2% after seven consecutive cuts.
Reuters
6 days ago
- Business
- Reuters
European shares end lower as corporate results, trade anxiety weigh
July 22 (Reuters) - European shares settled lower on Tuesday, with German equities logging their biggest one-day drop in two months as a batch of disappointing corporate reports and dimming prospects of a U.S.-European Union trade deal weighed on sentiment. The pan-European STOXX 600 index (.STOXX), opens new tab closed 0.46% lower, with Germany's DAX (.GDAXI), opens new tab logging a 1.1% drop, easing further from a recent record high. This earnings season is especially of interest for investors as they look for clues on how trade uncertainty and the euro's recent surge are impacting European export-heavy corporates. Latest earnings forecasts showed the outlook for European corporate health has slightly improved, although they are still expected to drop 0.3% on average, according to data compiled by LSEG. A year ago, STOXX 600 companies on average delivered a 3.0% increase in second-quarter earnings. On Monday, Sartorius Stedim Biotech ( opens new tab was among top losers on the STOXX 600, down 8.1% after the French lab supplies manufacturer reported its half-year results. Switzerland's Givaudan (GIVN.S), opens new tab lost 5.4% after missing half-year sales forecast due to the Swiss franc's 14% surge this year. Among major lenders, Julius Baer's (BAER.S), opens new tab first half profit took a hit, pressured by loan loss provisions and a charge from the sale of its Brazilian wealth management arm, sending shares of the Swiss bank down 2.1%. Keeping investors wary was also the lack of progress on prolonged negotiations between the U.S. and Europe as they brace for the EU potentially announcing a broader range of counter-measures against Washington and could escalate trade tensions. "If we see that 30% (U.S.) tariff implemented, followed by potential countermeasures from the European Union, it would significantly hurt the growth outlook for the eurozone—a region where growth is already in a very fragile position," Fiona Cincotta, senior market analyst at City Index said. Top on the radar for investors is a business activity survey and the European Central Bank's monetary policy verdict later in the week. Markets broadly anticipate that the central bank would leave interest rates unchanged. "The ECB essentially has their hands tied at the moment until they gain more clarity on what the trade relationship with the U.S. will look like," Cincotta said. Among others, Dulux paint maker Akzo Nobel ( opens new tab declined 3.4% after lowering its core profit outlook for 2025, while Swiss chocolate maker Lindt & Spruengli (LISN.S), opens new tab fell 6.4% as steep hikes in chocolate prices struck half-year volumes. In bright spots, Britain's Compass Group (CPG.L), opens new tab surged 5.4% after the food catering firm agreed to buy European premium food services business Vermaat Groep in a 1.5-billion-euro ($1.75 billion) deal including debt. Banco BPM ( opens new tab closed up 1.2% after Italy's market watchdog has suspended UniCredit's ( opens new tab bid for the lender for another 30 days. Attention will be on SAP ( opens new tab, the region's largest company by market cap, with its results due later in the day.
Reuters
7 days ago
- Automotive
- Reuters
Automakers propel European shares to two-week highs on US-EU trade deal optimism
July 23 (Reuters) - European shares closed near two-week highs on Wednesday, led by automakers, as investors anticipated a possible agreement between the United States and European Union to soften the blow of growth-denting tariffs. Futures tracking the pan-European STOXX 600 index got a further boost and were last up 2.1% as EU diplomats said the bloc and Washington were headed for a potential trade deal including a 15% U.S. baseline tariff on European imports - half the level U.S. President Donald Trump had threatened. Negotiations between the two economies have lagged in recent weeks, and investors are keen for an agreement before the August 1 deadline. The European Commission is planning to unveil counter-tariffs if the talks fail. The benchmark STOXX index <.STOXX> closed 1% higher and logged its biggest one-day gain in nearly a month, after Japan struck a trade deal with the U.S., sparking a rally in automobile stocks earlier in the day. "One of the premises underlying global markets is that once tariffs are implemented, they will not be as negative as feared," said Steve Sosnick, chief market analyst at Interactive Brokers. "From the European point of view, it's understandable why that would be perceived as good news, because it's reasonable to think that there will be some sort of negotiation between the U.S. and the EU to arrive at a deal". Most of the major bourses in the region, including Germany's DAX , France's CAC 40 (.FCHI), opens new tab along with main stock indexes in Italy (.FTMIB), opens new tab, rallied more than 1.3%. European automobile stocks (.SXAP), opens new tab surged 3.7% and logged its biggest daily rise in close to a month, tracking a steep rally by some Asian rivals. European carmakers such as Stellantis, Mercedes-Benz ( opens new tab, Volkswagen ( opens new tab and Porsche (P911_p.DE), opens new tab gained between 6.1% and 7.3%. Earnings were also on the radar, with technology stocks (.SX8P), opens new tab bogged down by a 4.1% slide in SAP ( opens new tab as investors were disappointed the software company held off on increasing full-year targets after reporting higher quarterly sales and earnings. ASM International ( opens new tab dropped the most on the benchmark index, down 10.4%, after the computer chip equipment maker reported second-quarter bookings below market expectations. UniCredit ( opens new tab rose 3.6% after the Italian lender posted higher-than-expected quarterly profit and raised its fiscal-year outlook, a day after a clash with the government prompted Italy's second biggest bank to ditch its takeover bid for rival Banco BPM. Nokia ( opens new tab, meanwhile, slumped 7.6% after the Finnish group lowered its guidance for 2025 comparable operating profit, while SSAB's ( opens new tab slid 9% after earnings fell more than expected in the second quarter. Spanish stocks (.IBEX), opens new tab were limited by a 4.7% drop in Iberdrola ( opens new tab after the utilities company raised 5 billion euros ($5.87 billion) to help pay for a big rise in investments in power grids in Britain and the United States. ($1 = 0.8515 euros)
Zawya
22-07-2025
- Business
- Zawya
Shares slip as investors look to earnings, tariff talks
LONDON - European shares fell on Tuesday, hit by mixed corporate earnings and anxiety over tariff negotiations between the U.S. and its trading partners, while the euro held steady. The Euro STOXX 600 index extended losses during morning trading and was last down 0.6%, with bourses in Germany and France losing 1.1% and 0.8% respectively. Among the big decliners were chemical stocks which shed 2% as Dulux paint maker Akzo Nobel lost 5.4% after lowering its core profit outlook for 2025. Earnings from firms including SAP and UniCredit were also in focus. Investors were also following tariff talks ahead of Washington's August 1 deadline, with the European Union exploring a broader set of possible countermeasures against the U.S. as hopes for an acceptable agreement fade. The euro was steady at $1.1689 after rising 0.5% on Monday, though still away from the near four-year high hit at the start of the month. The single currency is up 13% this year as investors looked for alternatives to U.S. assets bruised by tariff uncertainties. Its performance is closely monitored for its impact on profits in the euro zone's export-reliant economy. "The euro's ability to maintain preference over the dollar amid tariff tensions will depend on the extent of any escalation and whether the EU emerges as a relative loser while other countries secure significant deals with the U.S.," ING analysts wrote in a note to clients. Wall Street futures were marginally down. The benchmark S&P 500 and the Nasdaq closed at record highs on Monday. Investors await results this week from Wall Street giants Alphabet and Tesla, as well as European heavyweights LVMH and Roche, as uncertainty over tariffs clouds the outlook. Earlier, Asian share markets drifted lower after scaling a near four-year peak. MSCI's broadest index of Asia-Pacific shares outside Japan hit its highest since October 2021 but finished down 0.4%. The index is up nearly 16% this year. Japanese markets returned after a holiday on Monday following the weekend's election where the ruling coalition suffered a defeat in upper house elections, although Prime Minister Shigeru Ishiba vowed to remain in his post. The yen rallied 1% on Monday, recouping some of the losses from past weeks and was flat at 147.43 per dollar. FED INDEPENDENCE The dollar index, which gauges the unit against six other key currencies, was also flat at 97.849. Rumblings around the Federal Reserve's independence and whether U.S. President Donald Trump will fire Fed Chair Jerome Powell have kept investors on tenterhooks in recent weeks. U.S. Treasury Secretary Scott Bessent said on Monday the entire Federal Reserve needed to be examined as an institution and whether it had been successful. The Fed is widely expected to hold rates steady in its July meeting but might lower rates later in the year. Market focus will be squarely on Powell's impending speech on Tuesday for clues about when the Fed might ease policy. Brent crude futures fell 0.9% to $68.56 a barrel, while U.S. West Texas Intermediate crude slipped by the same amount to $66.59 per barrel. (Reporting by Tom Wilson in London and Ankur Banerjee in Singapore. Editing by Mark Potter and Bernadette Baum)
