Markets rebound following China-US trade turmoil

Global financial markets showed signs of stabilising on Tuesday, a day after China’s announcement of retaliatory tariffs on imports from the United States touched off Wall Street’s biggest loss in more than four months.

Dublin

Several Irish heavyweight stocks with exposure to the US market performed well, as sentiment rebounded following Monday's US-China woes. Building materials giant CRH was up 1.3 per cent to close at €28.41; Kerry Group was up 2.3 per cent to finish the session at €103.80; while insulations group Kingspan rose by more than 1.5 per cent to close out at €45.18.

Ryanair shrugged off a spike in fuel prices to rise by more than 2 per cent to €10.60 per share.

Mining group Kenmare Resources, meanwhile, which sells minerals to China, rose by 4 per cent to €2.34.

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London

The FTSE 100 jumped 1.1 per cent, its biggest one-day rise since early February, while the FTSE 250 climbed 1.3 per cent on its best day in more than four months.

Oil majors Shell and BP provided the biggest boosts on the main index as crude prices surged after Saudi Arabia said explosive-laden drones attacked facilities belonging to state oil company Aramco.

Irish-headquartered support services group DCC was among the top gainers with a 3.6 per cent rise, after it posted annual results and guided to another year of profit growth.

A sour spot on the index was telecoms giant Vodafone , which dropped 3.7 per cent to its lowest in a decade after it slashed its dividend to secure enough firepower to build 5G networks and complete its buyout of Liberty Global assets.

Among mid-caps, baker Greggs surged more than 15 per cent to an all-time high after it said the popularity of its vegan sausage rolls had continued to grow, leading it to hike its 2019 profit forecast for the second time this year.

Europe

The pan-European STOXX 600 index climbed 1 per cent, lifting off Monday’s two-month low which came after China slapped retaliatory tariffs on US goods

Trade sensitive European auto and tech stocks bounced 2.2 per cent and 1.2 per cent each, after being caught at the heart of Monday’s selloff.

Among auto stocks, Ferrari added 3.3 per cent, leading the sector index's rise. On the other hand, Renault tempered sector gains, falling 2.3 per cent. The French carmaker's Japanese partner, Nissan , flagged its weakest annual profit in more than a decade.

Banks rose 0.9 per cent percent, with Commerzbank up 4.3 per cent after Reuters reported UniCredit had stepped up preparations for a potential bid for the German lender. Unicredit shares fell 1.7 per cent, on a day when Italian banks' shares were pressured due to their holdings of the country's sovereign bonds.

Bayer shares ended 2 per cent lower, after hitting seven-year lows earlier in the day. A jury awarded more than $2 billion to a California couple in the largest US jury verdict against the German-listed company over allegations its Roundup weed killer causes cancer.

New York

Stocks on Tuesday rebounded from Monday’s plunge. The S&P 500 was up in late morning trading.

The recovery on Wall Street was broad, with energy companies, semiconductor-makers and other tech and industrial firms leading the American market higher. Apple, Boeing, Caterpillar and Wynn Resorts, which were all battered by trade-related fears Monday, also rose.

But there were signs that investors continue to worry about the costs of the prolonged trade fight. Retail stocks were among the worst performers of the day and Ralph Lauren suffered one of the steepest drops despite posting better-than-expected quarterly earnings results.

In a conference call with analysts after the release of the company's quarterly results, Jane Nielsen, Ralph Lauren's chief financial officer, said that the company was "taking a more cautious approach to inventories, especially in light of the dynamic trade environment".

(Additional reporting: New York Times, Reuters)