Irish shares fell on Thursday, along with most European markets, amid ongoing uncertainty about the future of the Iran ceasefire and whether the Strait of Hormuz would reopen fully.
Brent crude oil – the global benchmark – traded higher at $97.36 dollars per barrel, up from $95.20 a day earlier.
“The ceasefire looks less like a settlement and more like a reset of the deadline with optionality preserved on all sides,” said Stephen Innes, an analyst at SPI Asset Management. “The market has effectively been handed a two-week window where escalation risk is deferred but not removed, and that distinction is critical. When the clock is still running, rallies struggle to build depth because conviction never fully sets.”
Dublin
The Iseq Overall Index fell 1.5 per cent to 12,654.31. Ryanair led the index lower, slipping 3.5 per cent to €25.86. Airlines mostly sold off on Thursday as hopes of a quick drop in oil prices, and consequently jet fuel, receded as violence appeared to continue in the Middle East.
RM Block
Home builders, which are seen as sensitive to interest hikes, also retreated during the session amid a more general sell off of the sector. Glenveagh Properties fell 2.7 per cent to €1.98 while Cairn Homes lost 2 per cent, dropping to €2.17.
If the Iran war continues and the Strait of Hormuz remains effectively closed, that is seen as boosting inflation which would make interest rate increases more likely.
Insulation giant Kingspan dropped 2.6 per cent to €75.55.
London
The UK’s FTSE 100 edged lower and mid cap stocks posted a bigger fall on Thursday after recording their strongest session in months a day earlier, as oil prices rebounded on growing doubts over a fragile ceasefire in the Middle East conflict.
The blue-chip FTSE 100 closed 0.1 per cent lower at 10,603.5 points and the FTSE 250 was down 1 per cent.
Renewed strength in oil prices lifted BP 3.2 per cent, and Shell, up 1.4 per cent, while Irish firm DCC firmed 1.8 per cent as Exane BNP upgraded to ‘outperform’ from ‘neutral’.
Standard Life was a prominent faller, down 3.5 per cent, as it traded ex-dividend. So did Lloyds Banking Group, down 1.5 per cent.
Citigroup upgraded Lloyds to ‘buy’ from ‘neutral’, arguing that the lender is simply “too cheap” post its recent sell-off.
Ceres Power Holdings fell 6.2 per cent after brokerage Peel Hunt downgraded the clean energy technology developer’s stock to “sell” from “hold.”
Insurer Standard Life and speciality chemicals maker Croda International dropped more than 3 per cent each, as their shares were trading ex-dividend.
Europe
The CAC 40 in Paris closed down 0.2 per cent, while the DAX 40 in Frankfurt declined 1.1 per cent.
In Germany, software giant Sap dropped 6.4 per cent while carmakers also struggled. Mercedes-Benz dipped 2.1 per cent and Volkswagen fell 1.6 per cent.
Airbus struggled along with most aviation related stocks, dropping 4.6 per cent.
New York
By midmorning in New York, the Dow Jones Industrial Average was up 0.1 per cent, while the S&P 500 and Nasdaq Composite were 0.3 per cent higher.
Consumer discretionary stocks led broader gains on the S&P 500, supported by a 4.3 per cent gain in Amazon after its CEO said AI services at its cloud-computing unit were generating annualised revenue of over $15 billion.
Technology stocks on the S&P 500 pared declines to trade flat. Software stocks, however, were still under pressure with the iShares Expanded Tech-Software ETF down 4.2 per cent.
“The Iran conflict happened and software stocks didn’t sell off as much as others ... maybe there’s just some profit-taking and repositioning in those names,” said Dustin Thackeray, partner and head of portfolio management at Crewe Advisors.
Gains in Caterpillar and Honeywell countered declines in Salesforce and IBM, buoying the Dow.
The moves come a day after the S&P 500 and Nasdaq marked their biggest one-day jumps in over a week, and the Dow in a year.
Meanwhile, data showed U.S. inflation increased as expected in February and likely rose further in March amid the Iran war, while economic growth slowed more than previously estimated in the fourth quarter. – Additional reporting: Reuters/PA
