European shares fell on Friday as fresh US data stoked worries about higher inflation, ending a week where new tariff announcements from US President Donald Trump kept investors away from risky assets.
The pan-European Stoxx 600 index ended 0.7 per cent lower and was down 1.4 per cent for the week, its worst week since mid-December.
A commerce department report showed the personal consumption expenditures price index rose in line with expectations.
However, excluding volatile items such as food and energy, the index rose more than expected on an annual basis in the previous month, while consumer spending rebounded after falling in January.
Adding to the unease, final figures released by the University of Michigan showed consumer sentiment deteriorated further in March.
Dublin
The Iseq All-Share index lost 1.5 per cent to 10,392.99. Banking stocks were out of sorts, with AIB off 1.7 per cent at €5.97, while Bank of Ireland declined by 2.8 per cent to €10.95 and PTSB declined by 4.2 per cent to €1.61.
inflation in March came in far below forecasts in two of the euro zone’s largest economies, Spain and France, bolstering bets for another European Central Bank (ECB) rate cut in April.
AIB confirmed on Friday it plans to redeem €625 million of its riskiest bonds – known as additional Tier 1 perpetual securities – in the coming months, taking advantage of its earliest contracted opportunity to call the notes under.
It follows the bank raising about €700 million from the sale of similar bonds earlier this year.
Travel-related issues were also out of sorts, with Irish Continental Group (ICB) dropping 2.5 per cent to €5.46 and Ryanair easing 2.9 per cent to €19.61. Dalata Hotel Group was also on offer, falling 2.4 per cent to €5.26.
London
The FTSE 100 closed unchanged as investors avoided big bets on concerns over the global economic fallout exacerbating trade tensions already heightened by tariffs.
The focus is now on fresh tariffs the US is due to announce on April 2. US president Donald Trump indicated the measures may not be the like-for-like levies he has been pledging to impose.
Aerospace and defence stocks were among the top sectoral decliners, down 2.5 per cent.
Rolls-Royce, BAE Systems and Melrose Industries were the top decliners on the FTSE 100, falling between 1.3 per cent and 4.6 per cent.
WH Smith slipped 4.7 per cent after the retailer agreed to sell its UK high street business to Modella Capital.
On the flip side, SSE rose 3.8 per cent after the power generator and network operator named company veteran Martin Pibworth as its chief executive.
Europe
The real estate stock which particularly benefits from lower interest rates, jumped 1.5 per cent on the day. Utilities, often traded as a bond proxy, surged 1.6 per cent.
Deutsche Bank fell 2.9 per cent as the bank extended chief executive Christian Sewing’s contract, while its deputy and another top executive will depart as part of a management revamp, cementing the leadership team of Germany’s largest lender for the next phase of its turnaround.
Ubisoft’s shares reversed gains to end 1.8 per cent lower on Friday after rising as much as 12 per cent earlier on plans to set up a subsidiary to house three of its popular video game franchises.
New York
Wall Street’s primary indexes down sharply in early afternoon trading, as data underscored underlying price pressures, stoking fears that the Trump administration’s tariff manoeuvres could further exacerbate inflationary trends.
Equities have experienced significant declines over the past month, driven by concerns that president Donald Trump’s wavering policies might steer the economy towards a period of heightened inflation and tepid growth, potentially complicating the Federal Reserve’s monetary policy trajectory.
Lululemon Athletica was the latest to lower its annual forecasts, citing unpredictability surrounding tariffs. Shares of the sportswear maker plunged.
On the flip side, bullion miners Harmony Gold and Gold Fields jumped on higher gold prices, as investors flocked to safe-haven assets.
Wolfspeed’s shares slumped about almost half at one stage, hitting their lowest since 1998, a day after the chipmaker appointed a new chief executive amid its struggles to improve its financial position.
- Additional reporting, Reuters
