European shares closed lower on Friday, as investors assessed mixed corporate earnings while awaiting updates on a framework of an EU-US trade deal that officials said could be reached as early as this weekend.
Investors navigated the peaks and troughs around a potential agreement between the two large economies after a busy week of trade discussions with the US culminated in deals with Japan, Indonesia, and the Philippines.
The pan-European Stoxx 600 index dropped 0.6 per cent to session lows after US president Donald Trump said there was less chance of an agreement with the European Union (EU), but pared losses after EU diplomats reiterated that a deal of 15 per cent duties on European goods was still in the works. The index closed 0.2 per cent lower.
Dublin
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The Iseq All-Share index ended the session up just 0.03 per cent at 11,584.58. Banking stocks were in focus as investors positioned themselves in advance of interim results from the three players next week. AIB edged 0.1 per cent higher to €6.80, while Bank of Ireland rose 0.4 per cent to €12.61, and PTSB jumped 2.9 per cent to €2.11.
Housebuilders were weaker, however, with Cairn off 0.2 per cent at €2.18 and Glenveagh falling 0.1 per cent to €1.86.
Ryanair rose 0.8 per cent to €2.11 amid positive broker comment from Barclays, which reiterated its buy rating on the stock.
London
The UK’s FTSE 100 closed 0.2 per cent lower but extended its winning streak to a fifth week, while investors assessed a mixed bag of corporate earnings and eyed the EU-US trade talks. The benchmark registered a weekly gain of 1.4 per cent.
Construction and materials stocks led the sectoral decline, falling 1.8 per cent, dragged down by Marshalls, which tumbled 20.6 per cent, on downbeat full-year adjusted pre-tax profit forecast.
In corporate updates, NatWest rose 3.5 per cent after the lender said its profit increased by 18 per cent in the first half and the company announced a new share buyback worth £750 million (€858 billion).
Wizz Air jumped 11.5 per cent after Barclays upgraded the budget carrier to the equivalent of a buy.
Close Brothers surged 4.9% per cent after announcing the sale of its execution services and securities business, Winterflood, £103.9 million.
Europe
Puma was the biggest percentage loser on the benchmark index, falling 16 per cent, its largest daily drop in more than four months. The sportswear brand cut its full-year outlook and reported weaker-than-expected quarterly results.
LVMH gained 3.9 per cent after the French luxury group reported quarterly results, with analysts pointing to hopes on the horizon as the group said it saw signs of recovery in the Chinese market.
The broader luxury index rose 1.8 per cent and was the top sectoral performer.
Automobile stocks gained 1.4 per cent, boosted by Volkswagen’s 4.6 per cent rise after the CEO of Europe’s biggest carmaker said cost cuts must be accelerated in response to tariffs. Earlier in the session, shares took a hit on the company’s slashed full-year sales and profit margin forecasts.
Carrefour gained 5.5 per cent after Europe’s biggest food retailer reported its half-year results.
New York
Wall Street and the dollar were firmer in early afternoon trading as investors girded themselves for the week ahead, which includes a Federal Reserve policy meeting, crucial corporate results and Mr Trump’s August 1 deadline for negotiating trade deals.
Gold lost some shine, pressured by the dollar as healthy risk appetites lured investors away from the safe-haven metal.
More than a third of the companies in the S&P 500 have posted results, 80 per cent of which have beaten estimates, according to LSEG data.
Four members of the Magnificent 7 group of Artificial Intelligence-related megacap stocks – Amazon, Apple, Meta and Microsoft are on next week’s earnings docket, and market participants will scrutinise the companies’ conference calls for signs that AI expenditures are beginning to pay off and whether tariff-related uncertainties continue to weigh on forward guidance. – Additional reporting, Reuters
