European shares closed slightly lower on Thursday after US president Donald Trump threatened to impose tariffs on alcoholic products from the EU, further aggravating the potential for a full-blown global trade war.
In his latest pronouncement, Mr Trump said he would put a 200 per cent tariff on all wines and other alcoholic products coming out of EU countries if the European Commission did not remove its tariff on whiskey.
Dublin
The Iseq slid 0.8 per cent, as building materials group Kingspan fell 1.7 per cent to €79.35 and Ryanair also ended in the red, down 0.9 per cent at €20.44. The banks also declined, with AIB down 2.1 per cent at €6.64 and Bank of Ireland slipping 0.4 per cent to €11.48.
Glenveagh Properties, which said on Thursday that its outlook was “exceptionally strong”, supported by high demand for homes, ended close to flat at €1.49.
Glanbia was one of the best performers on the day, rising 2.7 per cent to €10.20.
London
British stocks ended mixed, with the benchmark FTSE 100 index flat amid US tariff concerns, while downbeat corporate results further dragged the mid-cap FTSE 250 index down 1 per cent to its lowest closing level since last April.
Concerns about the impact of US trade policy continued to keep investors on edge, while a survey showed the UK’s housing market had its slowest month in more than a year in February. Homebuilder stocks were down 2.1 per cent.
NatWest Group lost 2.7 per cent as the UK government sold a further 89 million shares in the lender, making it no longer the company’s largest shareholder. C&C Group lost 19 per cent, weighing on the FTSE 250, on a lower annual profit forecast.
Trainline dropped 13.2 per cent to a 15-month low, after the British rail ticketing company missed annual revenue estimates. Savills lost 8.6 per cent, hitting a more than one-year low, as the lack of a turnaround plan disappointed investors.
But Vodafone Group jumped 4.6 per cent after declining for two consecutive sessions, while ventilation products supplier Volution gained 12.7 per cent, hitting a three-month high on an upbeat full-year forecast.
Precious metal miners led sectoral gains, rising 1.6 per cent as safe-haven gold prices rose more than 1 per cent to an all-time high.
Europe
The pan-European Stoxx 600 edged down 0.2 per cent. Spirit-makers Pernod Ricard and Campari fell 4 per cent and 4.3 percent respectively, with the food and beverages sector lost 0.2 per cent. Hennessy cognac maker LVMH was off 1.1 per cent.
Automobiles and parts shed 1.7 per cent, leading sectoral declines. Carmaker Stellantis and car-parts supplier Valeo fell 2.3 per cent and 6.4 per cent respectively.
Novo Nordisk rose 3.4 per cent after analysts at Kepler Cheuvreux raised the drugmaker’s rating to “buy” from “hold”.
European truck makers declined sharply after the US Environmental Protection Agency’s (EPA) decision to start efforts to reverse the Joe Biden administration’s vehicle emissions rules.
Daimler Truck lost 4.4 per cent and was set for its worst day on record, while Volvo shed 2.2 per cent and Traton lost 2.6 per cent.
US
Wall Street stocks fell in early trading following Mr Trump’s threat to impose additional tariffs on imports from the European Union, although data showing cooling inflation offered some respite.
A majority of the S&P 500 sub-sectors were in the red, led by a 2.7 per cent drop in consumer discretionary stocks as Tesla slid 5.6 per cent.
The S&P 500 was on course to confirm a correction, dropping about 10 per cent from its recent record high and on the brink of its longest weekly losing streak in seven months.
Intel jumped 14.8 per cent after the beleaguered chipmaker appointed industry veteran Lip-Bu Tan as its chief executive. – Additional reporting: Reuters
