Energy shares fall on Strait of Hormuz signals as European banking proves to be safe bet

Global stocks held steady on Monday, although international energy companies were rattled by falling oil prices prompted by US President Donald Trump signalling a potential deal with Iran to reopen the Strait of Hormuz.

Shares in the banking sector proved to be a safe bet across Europe, with leading national banks boosting local stock indices. Closer to home, Ryanair’s share price soared following the publication of the airline’s financial results.

Dublin

The Iseq All-Share index increase 1.49 per cent to close at 14,417.86 on Monday, with Ryanair leading the charge into the green and only two listed companies falling in share price.

Ryanair was up 5.24 per cent to close at €24.10 a share following the publication of its financial results. Despite a 15 per cent fall in profits, which amounted to €2.15 billion, the airline’s chief executive Michael O’Leary committed to the company expanding, although perhaps with a boost from higher air fares.

The financial services sector held steady, with Bank of Ireland seeing its share price rise 1.20 per cent to €18.58 a share and AIB up 0.23 per cent to €10.93. PTSB saw no change in its share price of €2.95, following a week of High Court proceedings of its proposed sale to Austrian lender Bawag.

London

The London Stock Exchange began the trading week just about in the green, with strong returns from well known retail brands bringing the city’s top indices higher. The blue-chip FTSE 100 closed 0.29 higher at close of markets, while the more domestically-minded mid-cap FTSE 250 was up 1.40 per cent.

C&C, the drinks giant with Bulmers cider and Five Lamps beer under its portfolio, saw its share prices increase 4.26 per cent following a drop off last week after the company revealed a three per cent decrease in net profit last year.

Lloyds and Barclays banks also began the week in the green, with their share prices up 1.84 per cent and 2.18 per cent, respectively. Meanwhile, British oil and gas giant BP dropped 4.37 per cent, as crude oil prices dropped sharply in the aftermath of comments made be US President Trump on an agreement with Iran to reopen the Strait of Hormuz.

Europe

Shares across the Continent grew moderately, boosted by large gains in the banking industry that drew back losses in the energy sector. The blue-chip Stoxx 50 Index rose 0.74 per and the mid-market Stoxx 600 Index by 0.45 at close of markets.

Spain’s Santander Bank saw its share price increase 2.65 per cent, as it returns to stability following falls last week prompted by the Brazilian presidential election. German rival Deutsche Bank, meanwhile, was up 1.70 per cent and France’s BNP Paribas followed along, rising 1.62 per cent by close.

But losses in the energy sector drew Europe’s leading indices down in overall share prices. Italian oil and gas company Eni Spa saw its share price fall 2.84 per cent and France’s Total Energies by 2.47 per cent at end of trading hours, in a similar fate to their British rival bp

New York

Early trades on Wall Street had a strong start to the week thanks to renewed confidence in more traditional stocks, with investors holding their nerves as the US prepares to vote in midterm elections to elect their next congressional class.

The Nasdaq 100 index rose nearly 0.50 per cent, while the S&P 500 jumped some 0.60 per cent and the Dow Jones Industrial Average increased nearly one per cent before midday New York Time.

Shipping and ecommerce giant Amazon saw its share price rise over four per cent following an upgrade in its price target and recommendations from leading analysts, while electric vehicle manufacturer Tesla was up some 2.5 per cent.

Apple’s stock, however, fell 1.30 per cent in the morning as investors retreated from trading in advance of the technology company’s earning report being released.