Global markets fall as Israel-Iran conflict weighs on investor confidence
Global markets fell on Tuesday as
Israel's
conflict with
Iran
weighed on investor confidence.
Dublin
Euronext Dublin underperformed peers as it finished down 1.9 per cent on the back of some weakness in its bigger hitters.
Speaking to reporters on Air Force One, US president Donald Trump said pharmaceutical tariffs are coming 'very soon', which one trader suggested may have been a drag on the overall index.
Bank of Ireland was down 3.5 per cent at close of business, while AIB traded about 3 per cent below its placing price after Minster for Finance Paschal Donohoe moved to sell taxpayers' remaining stake of about 2 per cent in the bank.
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'A lot of people were asking about that, and there had been an initial expectation the stock would trade better, but, unfortunately, given markets and banking stocks in general, that wasn't to be,' the trader said.
Housebuilders were also weaker, with Glenveagh Properties and Cairn Homes down 1.5 per cent and 3 per cent respectively. 'That was in the context of UK housebuilders being weaker also, all down about 1-2 per cent,' the trader noted.
Ryanair was an outperformer among airlines despite finishing down 1.5 per cent. EasyJet was down nearly 3 per cent, while Aer Lingus parent International Airlines Group was down 4 per cent. A trader linked the dip to rising oil prices due to the conflict in the Middle East.
Elsewhere, Cavan-based insulation specialist Kingspan finished the day down 3.5 per cent. 'There was a decent bit of volume in that, and there is a seller around, so that's putting pressure on that one,' the trader said.
London
British equities ended lower in a broad-based sell-off, with hostilities between Israel and Iran weighing on market sentiment and focus on a slate of rate decisions from central banks including the Bank of England this week.
The blue-chip FTSE 100 index closed 0.4 per cent lower, with more than 70 per cent of its components clocking losses – though the index was still just a whisker away from its all-time highs.
Heavyweight banks bore the brunt of the selling pressure, with top lenders HSBC, Standard Chartered and Barclays each down more than 1 per cent.
Heavyweight energy gained 1.5 per cent with oil prices ticking higher due to tensions in the Middle East. BP and Shell added more than 1 per cent each as the top gainers on the blue-chip.
British midcaps fell 0.2 per cent. A standout was construction company Morgan Sindall which jumped 14.6 per cent after saying it expects annual pretax profit to be significantly ahead of previous expectations.
Europe
Euro zone government bond yields edged up on, again impacted by high levels of uncertainty over the conflict in the Middle East.
German 10-year yields, which serve as the benchmark for the euro area, rose 0.5 basis points to 2.54 per cent. Two-year Schatz yields climbed 2 basis points to 1.86 per cent.
Among the markets, the Cac 40 in Paris closed down 0.8 per cent, while the Dax 40 in Frankfurt gave up 1.1 per cent. The Stoxx Europe 600 fell 0.9 per cent.
New York
Wall Street indexes edged lower as Israel and Iran's air war, which began on Friday when Israel attacked Iran's nuclear facilities, raised concerns the conflict could create bottlenecks for oil exports from the oil-rich Middle East.
US energy stocks rose as oil prices remained elevated on the uncertainty. Chevron was up 2.1 per cent and Exxon advanced 1.5 per cent.
The surge in oil prices comes ahead of the Fed's monetary policy decision on Wednesday, when policymakers are widely expected to keep interest rates unchanged.
Ten of the 11 major S&P 500 subsectors fell. Healthcare stocks dropped the most, with a nearly 1 per cent decline. On the flip side, energy stocks gained 1.2 per cent. – Additional reporting: Agencies
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Is it worth my while to give half my inheritance to my husband to avoid tax?
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