European shares tumble while US stocks soar

Shares across Europe took a tumble on Friday as traders were wary of investing in technology companies following high-profile incidents of cyber attacks and hacking. Global energy companies ended the week in the red as well as a result of falling oil prices.

US indices, however, were still riding high off the back of electoral wins by the Democratic Party promising political stability, boosted by a positive employment update from the Federal Reserve.

DUBLIN

The Iseq All-Share index fell 0.73 per cent to close the trading week at 14,695.08.

Nutrition group Glanbia saw the starkest drop in share price, down 8.48 per cent to close at €19.42 a share, two days after the company announced bumper results of revenue growth and raised its guidance on full-year earnings-per-share growth.

US bank Morgan Stanley downgraded the Irish company from “equal-weight” to “underweight” and warned competition could put pressure on its margins next year.

AIB, too, closed the week in the red, down 2.86 per cent to close at €11.20 a share, as shares in banks across Europe generally retreated.

Ryanair, however, ended the week up 2.84 per cent to close at €25.69 following a steady increase in share price throughout the week. The airline’s chief executive indicated earlier he expects the company to expand further in 2027.

LONDON

The London Stock Exchange suffered losses lead by companies in the energy sector and technology industry. The blue-chip FTSE 100 index fell 1.01 per cent, while the mid-cap FTSE 250 fared slightly better, but still down 0.80 per cent by close of markets.

Britain’s two competing energy giants – Shell and BP – both saw their share prices stumble, down 1.63 per cent and 1.41 per cent, respectively, as oil prices fell following an ease in warfare in the Middle East. Harbour Energy, too, fell 1.72 per cent in share price.

Telecommunications giant Vodafone was also in the red, down 2.43 per cent after an analyst upgrade and increased institutional holdings failed to increase traders’ interest.

The British motor industry closed the trading week in neutral, with Rolls-Royce driving upwards, 1.74 per cent higher than Thursday’s closing price, although Aston Martin ending the week in the negative, down 0.86 per cent.

EUROPE

Elsewhere in Europe, stock indices across the Continent also fell in value after benefiting from highs not seen in months earlier in the week, with German companies suffering particularly large losses across the board.

The mid-market Stoxx 600 index fell exactly one per cent by close of markets, with its blue-chip counterpart Stoxx 50 index falling even further, down 1.12 per cent.

German companies such as car manufacturer BMW, energy provider Siemens and mail courier Deutsche Post all saw their share prices fall between three and four per cent after the country’s primary stock market benchmark fell more than two per cent.

NEW YORK

However, early trades on Wall Street were in the green by midday Friday, continuing this week’s upward trajectory boosted by renewed confidence in political stability following sweeping Democratic Party victories in the US midterm elections and promising employment data for the previous month released by the Federal Reserve.

The Nasdaq 100 index jumped around 1.75 per cent, while the S&P 500 hovered around a one per cent increase and the Dow Jones Industrial Average trailed behind, but still up some 0.20 per cent.

Leading computer software provider Nvidia saw its share price increase 3.66 per cent, which analysts credit to “dip buying”, or surges in stock purchases after the price has fallen momentarily. The so-called “AI stock boom” has eased this week, as US investors looked for safer bets amid initial political uncertainty surrounding the country’s elections. – Additional reporting: Bloomberg.