European stock markets managed to shake off early declines, closing higher on Wednesday, buoyed by strong performances in the healthcare sector. Meanwhile, Wall Street faced challenges due to disappointing tech earnings and concerns over global trade policies.
Dublin Market Remains Steady
The Irish stock exchange remained flat following Tuesday’s 1.1% gain. AIB and Bank of Ireland shares remained steady at €5.72 and €9.54 per share, respectively.
Despite an initial dip, Ryanair shares edged up by nearly 1% to €20.50, following a modest 2% increase in January passenger numbers. The airline attributed the slower growth to delays in Boeing aircraft deliveries.
Homebuilders Glenveagh and Cairn Homes also saw modest gains, increasing by 0.6% and 1.3% to €1.70 and €2.31 per share, respectively. However, insulation specialist Kingspan fell by over 2% to €65.15 per share.
London-listed DCC, an Irish-headquartered company, declined by 3.5%, despite reporting third-quarter profits in line with market expectations. Weaker demand for consumer technology over the holiday season contributed to a drop in operating profits within its technology division.
European Stocks Show Resilience
The pan-European Stoxx 500 index climbed 0.4%, while the Stoxx 50 gained 0.2%. The banking sector played a significant role in driving the gains.
Spain’s Santander surged after announcing a planned €10 billion return to shareholders through buybacks. However, Italian bank Intesa Sanpaolo saw a slight decline of 0.8% despite posting strong net income figures for 2024 and revising its 2025 outlook upwards.
French bank BNP Paribas fell by nearly 1%, despite reporting a 15% increase in fourth-quarter profits. Similarly, Spain’s BBVA rose by 0.4%, whereas the Netherlands’ ING Groep dipped by 0.5%.
London Stocks Rise as Rate Cuts Loom
With the Bank of England expected to cut interest rates on Thursday, British stock indices saw a boost. The FTSE 100 and FTSE 250 both rose by over 0.5%.
The healthcare sector led the gains, with GSK soaring by 7.6% following strong fourth-quarter earnings. Meanwhile, mining stocks had a mixed performance. While Rio Tinto edged up by 0.4%, Glencore and Antofagasta dipped slightly.
Wall Street Faces Mixed Signals
Across the Atlantic, Wall Street experienced turbulence as major indices struggled for momentum. Treasury yields slid following weaker-than-expected corporate earnings and economic data.
Tech giant Alphabet saw its shares plunge by over 7% due to lower-than-expected cloud revenue and a substantial €72 billion investment in artificial intelligence.
Chipmaker Nvidia rebounded with a 3.8% gain, recovering from last week’s DeepSeek-related downturn. Meanwhile, Advanced Micro Devices dropped by almost 9%.
Apple shares declined by 1.2% amid reports that Chinese regulators may launch an antitrust investigation against the company.
Market Outlook
Despite the day’s gains in European stock markets, concerns linger over global trade tensions and rising operational costs. Investors will be closely watching upcoming economic data and central bank decisions to gauge market direction in the coming weeks.
