Wall Street stocks fell, European equities rose and oil edged down on Tuesday as traders assessed the previous day’s White House talks on the war in Ukraine, and looked ahead to a key meeting of central bankers.
US president Donald Trump said he hoped Russian president Vladimir Putin would move forward on ending the war in Ukraine but conceded the Kremlin leader may not want to make a deal.
On Monday, Mr Trump told Ukrainian president Volodymyr Zelenskiy the United States would help guarantee Ukraine’s security in any agreement to end Russia’s war there, though the extent of any assistance was not immediately clear.
Declines in Nvidia and other heavyweight artificial intelligence stocks pulled the S&P 500 and the Nasdaq in New York down.
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DUBLIN
Ryanair led a relatively positive session on Dublin’s Iseq, rising by 1.3 per cent to €26.98, despite winning the dubious accolade of being the most complained about Irish company, according to new data from the consumer watchdog. Glanbia, which enjoyed a positive bounce in the wake of recent results, continued its climb, rising by 1.3 per cent to €14.28.
AIB and Bank of Ireland rose by 1 per cent and 1.3 per cent respectively in line what other financials across Europe. Insulation maker Kingspan also had a strong session, rising by close to 2 per cent.
EUROPE
Europe’s broad Stoxx600 index rose 0.7 per ent, outperforming Asian stocks, which fell slightly.
Europe’s gains were capped by declines in defence names, with the Stoxx Europe Total Market Aerospace & Defense index down 2.6 per cent, as traders saw the talks as a chance to take profit in the sector after a strong run.
With any breakthrough in talks, “I think European stocks are likely the biggest winners, and within that framework, I think industrial companies, construction for rebuilding materials, and financial companies,” said Michael Arone, chief investment strategist at State Street Investment Management.
Losers could include shares in energy and defence after their recent gains, he said.
LONDON
Britain’s main indexes climbed on Tuesday with broad-based gains, though advances were tempered by losses in defence stocks as investors assessed prospects for a Russia-Ukraine peace deal.
The blue-chip FTSE 100 gained 0.3 per cent.
The midcap index FTSE 250 rose 0.4 per cent, snapping a three-day losing streak.
Market sentiment improved following Mr Trump’s meeting on Monday with Mr Zelenskiy and European allies, where he pledged US support for Ukraine’s security in any war-ending agreement.
However, Mr Trump conceded that Russian president Vladimir Putin might reject negotiations entirely.
Aerospace and defence sector fell 2.8 per cent, marking its largest single-day decline since early April, though it maintains a 70 per cent yearly gain.
This retreat mirrored broader European defence stocks as investors locked in profits after a strong performance.
Financials led the FTSE 100 gains, with the banking index rising 0.3 per cent. Lender Metro Bank advanced 5.3 per cent after RBC Capital Markets upgraded the stock to “outperform” from “sector perform”.
“Banks are potentially benefiting from the fact that the Bank of England may be slower in cutting rates than initially expected,” said Fiona Cincotta, senior market analyst at City Index.
NEW YORK
US equities decline on Tuesday as earnings from Home Depot kicked off a string of key retail reports and as investors awaited a Federal Reserve symposium this week to set expectations for the path of interest rates.
The S&P 500 Index fell 0.2 per cent initially in New York, led by technology and communication services sectors. Palo Alto Networks rose 4.8 per cent in the second-biggest gain in the index after releasing a stronger-than-expected annual sales forecast.
The tech-heavy Nasdaq 100 Index dropped 1 per cent amid a rotation into blue-chip stocks. The Dow Jones Industrial Average rose 0.2 per cent and is on pace to close at a record.
Retail earnings reports expected this week will give investors a clearer picture of US consumer spending. A Home Depot sales returned to growth in the second quarter. Lowe’s, Target and Walmart are all scheduled to report this week.
Meanwhile, US treasury secretary Scott Bessent said a recent uptick in services inflation was driven by investment services.
The comments come before an annual Fed symposium in Jackson Hole, Wyoming, where chair Jerome Powell is scheduled to deliver a speech on Friday that investors will be studying for clues around the potential for an interest-rate cut as soon as next month. – Additional reporting Reuters/Bloomberg
