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Business Times
a day ago
- Business
- Business Times
Europe: Shares tumble as Israel-Iran conflict escalates
EUROPEAN shares closed lower on Friday (Jun 13) as Israel's wide-scale strike against Iran triggered a broad market selloff, with investors rushing to safe-haven assets amid an already uncertain trade environment. The pan-European Stoxx 600 index fell 0.9 per cent, briefly hitting its lowest level in three-weeks. The index also marked its fifth consecutive declining session and longest losing streak since September 2024. Israel launched a barrage of strikes across Iran, saying it had attacked nuclear facilities and missile factories. The news sent global risk assets lower and investors moved into traditional safe havens like the dollar and gold. Though Washington said it had no part in the attack, US President Donald Trump, Israel's main ally, suggested that Iran had brought the attack on itself by resisting a US ultimatum in talks to restrict its nuclear programme. Most regional stock bourses finished in the red, with Germany's DAX ending 1.1 per cent lower after data showed German inflation eased to 2.1 per cent in May, confirming preliminary data. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'If this is over quickly, we'll see a fairly quick recovery and the markets basically are discounting the possibility that this drags out,' said Patrick Armstrong, chief investment officer at Plurimi Wealth. 'Our view is that it probably will be very short lived because Iran isn't in a position to respond meaningfully, given the power dynamics between the two countries', he added. Most Stoxx sub-sectors clocked losses, with auto stocks leading declines, down 2.2 per cent. Travel and leisure also dropped 2 per cent – with airline operators ICAG, Lufthansa and Ryanair among the biggest laggards as many airlines cleared out of the airspace over Israel, Iran, Iraq and Jordan and crude oil prices surged. Energy stocks advanced 0.6 per cent as crude oil prices jumped close to 6 per cent on worries about a disruption in Middle East oil supplies. Shipping groups Maersk advanced 4.2 per cent and Hapag-Lloyd gained almost 1 per cent, respectively, as analysts flagged upside risks to freight rates amid the supply disruptions. Defence companies also jumped, with Germany's Rheinmetall up 2.7 per cent and UK's BAE Systems adding 2.9 per cent. A measure of European volatility also shot up to its highest level since May 26. The benchmark index Stoxx 600 posted a weekly decline, as investors were unimpressed by the outcome of US-China talks earlier this week, and had doubts over an EU trade deal with the US before Trump's Jul 8 tariff deadline. REUTERS
Business Times
02-05-2025
- Business
- Business Times
Europe: Shares rise as markets cheer signs of easing Sino-US tensions, US jobs data
[BENGALURU] European shares surged on Friday (May 2), capping off a week filled with earnings across the continent, as signs of a potential de-escalation of trade tensions between the US and China and a stable jobs report in the US aided risk-taking. The pan-European Stoxx 600 index closed 1.7 per cent higher, hovering near its closing level of Apr 2 – before global markets were roiled by US President Donald Trump's now-delayed 'reciprocal' tariffs on most trading partners. Most regional bourses registered gains, with German blue chips leading the pack with a 2.6 per cent increase for the day. Among the Stoxx sub-sectors, technology soared 3.4 per cent, while industrials added 3 per cent. Global stocks initially rose after China's Commerce Ministry said that Beijing was 'evaluating' an offer from Washington to hold talks over Trump's 145 per cent tariffs and that Beijing's door was open for discussions. Equities received a further boost after data showed US job growth slowed marginally in April and the unemployment rate held steady at 4.2 per cent, assuaging fears that the world's biggest economy was close to recession after first quarter gross domestic product data had shown a sharp contraction. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The employment figure gives the administration more breathing room in its trade negotiations, as risk assets are likely to respond favourably,' said Kevin O'Neil, associate portfolio manager at Brandywine Global. Back in Europe, fresh data showed eurozone prices rose more than expected last month and underlying price pressures accelerated, though that was not expected to deter the European Central Bank (ECB) from cutting interest rates. 'The market has been taking a doveish view for the ECB following recent events... so, while a further cut in June seems all but given, the chances of a 50 basis points cut seem low for now, and the path for rates further out might be less clear than the market thinks,' HSBC economists said. Dutch lender ING advanced 7.4 per cent after posting stronger-than-expected first-quarter profit and announcing a two billion euro (S$2.9 billion) share buyback. Danske Bank gained 6 per cent after Denmark's biggest lender reported forecast-beating first-quarter profits. Shell rose 2.1 per cent after the oil major reported a 28 per cent drop in first-quarter net profit – though it beat analysts' expectations. Airbus added 5.3 per cent after the planemaker topped quarterly estimates across the board and reaffirmed its annual outlook. Topping gains on the Stoxx 600 was Cofinimmo, jumping 10.4 per cent after peer Aedifica launched a takeover offer with a 'significant premium' on the Belgian real estate investment trust. Shares of Aedifica fell 2.9 per cent. REUTERS
Yahoo
04-03-2025
- Business
- Yahoo
EU Commission proposes 800-billion-euro defence plan
BRUSSELS (Reuters) -The European Commission proposed on Tuesday new joint EU borrowing of 150 billion euros ($157.76 billion) to lend to EU governments for defence as part of an overall 800 billion total financing effort to boost Europe's defence capabilities. The 150 billion euros of new joint borrowing is to go towards building pan-European capability domains like air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems or to address other needs from cyber to military mobility, the Commission said. "It will help Member States to pool demand and to buy together. This will reduce costs, reduce fragmentation increase interoperability and strengthen our defence industrial base," Commission President Ursula von der Leyen said. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. EU leaders will discuss the proposal at a special summit devoted to defence spending on Thursday. The Commission also proposed to lift limits imposed by EU rules on government spending in case of defence investments. "If Member Sates would increase their defence spending by 1,5% of GDP on average this could create fiscal space of close to 650 billion euros," von der Leyen said. The Commission also proposed that EU countries can use for defence purposes money they receive from the EU budget in funds to equalise the standards of living across Europe. All these elements could provide up to 800 billion euros for EU governments to spend on defence projects. "Europe is ready to assume its responsibilities. Europe could mobilize close to 800 billion euros for a safe and resilient Europe. We will continue working closely with our partners in NATO. This is a moment for Europe. And we are ready to step up," she said. The Stoxx Europe Aerospace and Defence index rose on the news to 2284.88 from 2265.36. ($1 = 0.9508 euros)
