European stocks closed higher on Wednesday, buoyed by German cabinet approval of a €46 billion corporate tax relief package aimed at kick-starting growth.
The relief package, the first of a broader series of measures from Berlin’s new government, is an attempt to prevent the struggling economy from shrinking for a third consecutive year.
Meanwhile, trade talks between the US and Europe are progressing, according to European negotiators, who added that the doubling of US metals tariffs, which kicked in on Wednesday, are not helping negotiations.
The pan-European Stoxx 600 closed up 0.5 per cent after briefly touching a one-week high.
DUBLIN
The Iseq All-Share Index dipped 0.7 per cent to 11,371.66, dragged down by banking stocks as sector followers positioned themselves ahead of the European Central Bank’s (ECB) rates-setting meeting on Thursday, at which it is expected to lower official borrowing costs again.
AIB lost 3.7 per cent to €6.82, while Bank of Ireland dipped 2.7 per cent to €11.98.
Still, Ires Reit edged 1.7 per cent higher, as property stocks typically fare better when rates fall.
Ryanair edged 1 per cent higher to €23.74. Chief executive Michael O’Leary disclosed late on Tuesday that he has sold €21 million worth of shares in the company that were held in a pension scheme connected to him.
LONDON
The FTSE 100 index closed up 0.2 per cent, helped by news that the S&P Global UK services purchasing managers’ business activity index rose to 50.9 points in May from 49.0 in April, improving upon the flash reading of 50.2 released late last month, and above the 50.0 no-change threshold.
Babcock International, an aerospace, defence and nuclear engineering services company, gained 4.3 per cent amid further consideration of the UK defence spending review this week.
DiscoverIE Group jumped 15 per cent after reporting higher profit and an increased dividend. The designer and manufacturer of electronic components for industrial applications said pretax profit was £32 million (€38 million) in the financial year ended March 31st, up 44 per cent on the year.
But B&M European Retail struggled, falling 14 per cent as its annual results failed to inspire investors.
Brent oil was lower at $64.65 (€65.58) a barrel at the time of the London equities close on Wednesday, compared to $65.73 dollars on Tuesday.
EUROPE
Most European sectors rose, with technology leading gains. The food and beverages sector rose, buoyed by a 6.4 per cent rise in Campari.
Among individual movers, Airbus SE shares rose 2.2 per cent after Bloomberg News reported Chinese airlines are considering ordering hundreds of aircraft as soon as next month.
STMicroelectronics jumped 11.1 per cent after its chief executive said the French-Italian chipmaker has seen signs of an upturn.
NEW YORK
Wall Street shares were ahead in early afternoon trading and US treasury – or bond – yields were lower as investors monitored movement in trade negotiations and looked ahead to Friday’s critical US employment report.
On the economic front, payrolls processor ADP reported the US private sector added 37,000 jobs last month, or 69.2 per cent fewer than analysts expect the Labor Department’s more comprehensive employment report to show on Friday. Additionally, survey data showed the US services sector slipped into contraction last month, while prices paid – an inflation predictor – hit the highest level since November 2022.
Shares of Hewlett Packard Enterprise rose as demand for the company’s artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
GlobalFoundries inched higher after the chip manufacturer announced plans to increase its investments to $16 billion.
Tesla dropped. The electric-vehicle maker’s sales fell for the fifth straight month in big European markets.
Shares of cybersecurity firm CrowdStrike slumped after it forecast quarterly revenue below estimates.
Dollar Tree fell as the discount store operator forecast second-quarter adjusted profit could drop as much as 50 per cent from a year ago due to tariff-driven volatility. – Additional reporting, Reuters, PA
