Oil price surge and AI nerves weigh on shares

A surge in oil and continued jitters over the resources needed for AI development kept shares depressed on Friday.

Brent crude hit $115 (€103) a barrel early in the day, its highest for five months, as fears grew that the US would renew strikes on Iran.

Dublin

The Irish market was relatively quiet, closing slightly down at 13,938.20, ahead of the October bank holiday weekend, dealers said.

Insulation and building materials group Kingspan shed 2 per cent to €89.35.

Dealers said the stock, which has gained ground on the back of the global rush to build data centres, suffered as investors turned against AI-linked stocks this week.

Airline Ryanair retreated 1.87 per cent to €22.53 on the back of oil price gains.

Traders noted that most European carriers suffered on Friday, some losing between 3 per cent and 3.5 per cent.

Housebuilder Glenveagh climbed 1.89 per cent to €2.425 while rival Cairn Homes was flat at €2.71.

AIB added 1.65 per cent to €10.81 but its peer Bank of Ireland edged 0.64 per cent down to €17.92.

London

Oil price gains boosted BP, which rose 4.35 per cent to 638.5 pence sterling and Shell which gained 3.72 per cent to 4,033p. Both report third quarter results next week.

Medical equipment maker Smith & Nephew (S & N) firmed 1.7 per cent to 1.153p after the Financial Times reported it came close to combining with Johnson & Johnson’s DePuy Synthes orthopaedics unit, but discussions fell apart over a leadership disagreement.

Aircraft engine maker Rolls-Royce led the blue-chip fallers, down 7.6 per cent at 1,164.2p, weighed by the current geopolitical uncertainty, the high jet fuel price environment and an underwhelming response to earnings from French peer Safran, which fell 10 per cent.

Fellow aerospace firm Melrose Industries was off 4.7 per cent at 452.6p.

Aer Lingus owner International Consolidated Airlines Group slipped 3.52 per cent to 394.7 as air travel shares tumbled across Europe following the hike in oil prices. “They move in lock-step,” said one dealer.

Europe

Europe’s Stoxx 600, which tracks 18 markets, was poised for a weekly fall on Friday following a rout of tech stocks earlier in the week.

Luxury goods group Kering plunged 16.6 per cent to €178.12 after ​third-quarter sales at its flagship Gucci brand fell as the Middle East and a Chinese wealth tax crackdown hit home.

Shares in luxury goods businesses have been among Europe’s worst hit this year.

Among other stocks, Holcim gained 5.5 per cent to €66.80 after the Swiss ‌cement maker raised its full-year earnings forecast

French caterer Sodexo rose 6.3 per cent to €59.95 after reporting stronger-than-expected full-year revenue.

Volvo Cars slumped more than 20 per cent to 10.7 Swedish kroner after reporting a bigger-than-expected third-quarter operating loss and said it would cut ​a further 2,500 jobs.

L’Oreal climbed 4 per cent after the French cosmetics group beat third-quarter sales forecasts.

New York

The tech-heavy Nasdaq edged higher on Friday, helped by signs of stabilisation in some tech stocks, while telecom shares tumbled on concerns that SpaceX’s entry in the sector could ​heighten competition and threaten their market share.

For the week, the benchmark S&P 500 and the Nasdaq were on track for losses, while the blue-chip Dow remained slightly higher, supported by gains in defensive stocks.

AT&T, Verizon and T-Mobile fell between 1.3 per cent and 5.6 per cent after a report said Elon Musk’s SpaceX was in talks with cellular ‌infrastructure companies about launching a nationwide wireless carrier program. SpaceX ​shares gained 2.2 per cent.

US cell tower operators gained from the news, with Crown Castle up 11.11 per cent and American Tower up 4.8 per cent. – Additional reporting: Bloomberg, PA, Reuters