European stocks rallied for a fourth straight session as forecasts for strong corporate earnings drowned out tariffs and trade concerns, while energy stocks jumped after the Trump administration greenlit a significant offshore wind project.
On Wall Street, the main indices trended lower as traders looked for new reasons for optimism after the recent China trade deal-fuelled rally.
Investors continue to weigh geopolitical tensions as US president Donald Trump said Ukraine and Russia would “immediately start negotiations” toward a ceasefire.
DUBLIN
The Iseq index touched an all-time high on Tuesday after rising 1.5 per cent, led by big gains for Irish bank shares.
Bank of Ireland shares rose by 2.7 per cent to close at €11.85 per share while AIB advanced by 3.2 per cent to €6.71 in line with a wider sectoral move.
Ryanair, which added 5 per cent after publishing financial results on Monday, moved 0.9 per cent higher on Tuesday, closing at €23.7 per share.
Cairn Homes and Glenveagh added 4.6 per cent and 3.3 per cent.
Kingspan added 0.7 per cent to close at €76.40 per share, while hotel group Dalata was down marginally to €5.59.
EUROPE
European shares rose for a fourth consecutive session, leaving the pan-Continental Stoxx 600 index up 0.5 per cent and the blue-chip Stoxx 50 up 0.73 per cent.
Danish energy group Orsted led gains, advancing by 14 per cent after Mr Trump lifted an order that lifted a stop-work order on an offshore wind facility off the coast of New York.
Vestas Wind also added 4.8 per cent.
“Investors are still underinvested and there’s cash sitting on the sidelines,” said Mohit Kumar, chief European strategist at Jefferies International, adding that market participants will be forced to chase any moves higher in risky assets.
Swiss bank UBS dropped 3.3 per cent, with traders citing a media report that the lender was set to lose the first leg of a battle over government proposals to make it hold more capital.
Heineken dipped 3 per cent after Bloomberg News reported Mexico’s Femsa had sold its remaining stake in the brewer.
LONDON
Pushed 0.9 per cent higher on the session, the benchmark FTSE 100 index reached a two-month high, fuelled by strong corporate earnings. The mid-cap FTSE 250 finished 0.7 per cent higher, touching a three-month high.
Vodafone gained 7.3 per cent after the telecom giant said it sees cash-flow growth this year, boosting the wider sector 1.7 per cent.
Diploma gained 15.1 per cent, hitting an all-time high after the technical products and service distributor raised its full-year, organic revenue growth forecast.
Barclays advanced 1.2 per cent after the British bank hired former UBS banker Marc Warm as its global co-head of capital markets.
Greggs gained 9.2 per cent and boosted the midcap index after the fast-food chain reported sales growth picking up as the year progressed.
NEW YORK
Wall Street’s rally took a breather on Tuesday, with stocks falling as traders awaited fresh catalysts after a six-day run that put the S&P 500 up almost 20 per cent from its April lows.
The S&P fell 0.3 per cent while the Nasdaq 100 slid 0.4 per cent and the Dow Jones Industrial Average shed 0.1 per cent.
Risks such as tariff uncertainty, softening economic data and fiscal headwinds challenge the sustainability of the recent equity rebound, JPMorgan Chase strategists including Tony SK Lee wrote in a note.
“There is little question that the momentum in the equity market is quite strong. That said, the market is getting overbought near-term, so it could see a breather at any time,” said Matt Maley at Miller Tabak. “However, unless that breather turns out to be a serious reversal, a retest of those all-time highs soon is very possible.”
Most big techs dropped, though Tesla climbed as Elon Musk said he’s committed to leading the company as CEO in five years’ time.
Retailer Home Depot pared earlier gains but was still slightly up after beating Wall Street estimates for first-quarter sales. – Additional reporting: Reuters, Bloomberg
