A risk-off week in global markets ended with most of the big stock indices falling on Friday as concerns about the US government shutdown and inflated artificial intelligence company valuations came to the fore.
DUBLIN
Euronext Dublin closed down 0.9 per cent, broadly in line with its European peers.
Irish banks slipped, with PTSB giving back 1.3 per cent of the rally that followed last week’s sale announcement, closing at €3.17 per share.
AIB and Bank of Ireland also dropped, falling 1.1 per cent and 1.2 per cent to finish the week at €8.22 and €14.75 per share.
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Big components like Ryanair, which extended Thursday’s decline, further dragged on the index. The airline slid 0.8 per cent to close at €26.42 per share.
Housebuilders Glenveagh and Cairn Homes saw the biggest declines on the session, falling 2.6 per cent and 2.3 per cent to €1.83 and €1.88 per share.
LONDON
UK stocks logged losses for the week with the FTSE 100 dropping 0.4 per cent, and the mid-cap FTSE 250 falling 0.7 per cent.
Travel and leisure stocks declined 2.9 per cent, with IAG sliding almost 11 per cent after the Aer Lingus and British Airways owner flagged weakness in the US market.
Aer Lingus said it expects fares to be broadly flat next year amid increased route competition as the Irish market absorbs new supply.
Meanwhile, Rightmove plunged 12.5 per cent as Britain’s biggest property portal warned of slower profit growth next year. The broader real estate sector lost 1.2 per cent.
Heavyweight banks shed value as HSBC and Barclays fell 1.7 per cent and 1.2 per cent.
On the bright side, ITV jumped 16.6 per cent as the broadcaster said it is in preliminary talks with Comcast-owned pay-TV company Sky over a £1.6 billion (€1.8 billion) sale of its media and entertainment division.
EUROPE
European shares ended a volatile week lower with the blue-chip Stoxx 50 and the pan-European Stoxx 600 indices down 0.9 and 0.6 per cent respectively on Friday.
Analysts point to a myriad of factors for the sell off. Elevated valuations in tech-related stocks, the US government shutdown and hawkish Federal Reserve commentary all contributing to risk-off sentiment.
Technology stocks were among the top decliners on the week, while tech equipment makers such as Legrand, Schneider Electric and Siemens Energy are set to log heavy losses.
Chipmakers Infineon and ASML slid by 3.2 per cent and 2.7 per cent, while German software giant SAP gave back 0.9 per cent.
Moving in the other direction, beaten-down auto stocks have rallied on expectations that Dutch company Nexperia would resume chip shipments from China.
BMW advanced 2 per cent on Friday, making it one of the biggest movers on the Stoxx 50, with Volkswagen not far behind after adding 1.5 per cent.
NEW YORK
A drop in equities put the S&P 500 on pace to halt a streak of three weeks of gains as US consumer sentiment sank to an over three-year low, adding to anxiety caused by the government shutdown.
Things were even worse for the Nasdaq 100 as a rout in artificial intelligence left the gauge on track for its worst week since April, when it entered a bear market.
Nvidia and Broadcom fell 2.8 per cent and 2.2 per cent, respectively.
Tesla shareholders approved the largest corporate pay package in history for chief executive Elon Musk.
Shares fell 3.3 per cent, tracking broader market sentiment and weighing down the consumer discretionary sector.
Among others, Take-Two Interactive declined 6.6 per cent after delaying its popular video game GTA VI to November 2026.
Buyout shop KKR fell 1.1 per cent after it said it would return investment in an Asian focused fund to investors – Additional reporting: Bloomberg, Reuters
