European shares fell on Friday, with UK banking stocks rattled by reports that chancellor Rachel Reeves could target the sector with levies to help shore up public finances.
The pan-European Stoxx 600 ended the session down 0.6 per cent.
DUBLIN
The Iseq All-Share index ended the session down 0.9 per cent at 11,281.29. Banking stocks were generally out of sorts, with Bank of Ireland down 2.1 per cent at €12.64 and AIB off 0.8 per cent at €6.94. They fell in line with UK banks after a British think-tank called for a new levy on lenders and a newspaper report said industry figures were worried that Downing Street was planning to raise cash by targeting the sector.
Both banks have operations in the UK. However, PTSB, which does not have a UK business, advanced 2.6 per cent to €2.33.
RM Block
Housebuilders gained, with Cairn Homes moving 0.7 per cent higher to €2.20 and Glenveagh Properties rising 1.4 per cent to €1.95.
Ryanair was little changed, up 0.1 per cent at €25.25, even amid reports that the carrier plans to cut the number of flights to and from regional airports in Spain in reaction to a fee increase by state-controlled airport operator.
LONDON
The FTSE 100 ended Friday 0.3 per cent lower, with banks standing out as a weak spot. Lenders NatWest, Lloyds Banking Group and Barclays fell 4.9 per cent, 3.4 per cent and 2.2 per cent, respectively.
On Friday, a report by the Institute for Public Policy Research said the UK treasury should impose a new levy to recoup “windfalls” made by lenders as a legacy of the Bank of England’s quantitative easing programme, undertaken in the wake of the financial crisis.
Faring better, medical products group ConvaTec, which rose 1.4 per cent as interim chief executive Jonny Mason and interim chief financial officer Fiona Ryder picked up £167,000 (€192,790) of shares between them.
Prudential rose 2.3 per cent as Bank of America said the insurer was its top sector pick, highlighting forecast dividend growth and share buy-backs.
Meanwhile, JTC, the London-listed provider of fund solutions, shot up 18 per cent for a market value of £1.92 billion as it said its board has rejected a takeover proposal from private equity firm Permira Advisers.
EUROPE
Shares of Remy Cointreau pared early gains to drop 4.1 per cent in Paris, even as the French spirits maker raised its full-year 2025/26 profit outlook.
Czech-based firearms maker Colt CZ Group dipped after entering a deal to buy chemicals group Synthesia Nitrocellulose in two stages in a transaction valuing the target at 22 billion crowns (€900 million).
France’s Cac 40 lost 0.8 per cent, bringing its losses for the week to over 3 per cent. Earlier this week, the country’s opposition parties said they will bring down the minority government in a September 8th vote, which prime minister Francois Bayrou unexpectedly announced on Monday. The vote carries heavy risks for the economy, bringing back fears of recession, business leaders.
NEW YORK
Wall Street’s main stock indexes were lower in early afternoon trading, pressured by technology stocks such as Dell and Nvidia, while investors parsed inflation data showing tariffs have started feeding into prices.
Dell fell after the personal computer maker forecast quarterly profit below estimates.
Nvidia lost ground, a day after the AI chip leader’s dour China market expectations disappointed investors accustomed to blockbuster forecasts from the company.
The spotlight was on a Commerce Department report that showed the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, rose 2.6 per cent in July as expected on an annual basis – above the central bank’s 2 per cent target.
“Even if we see an uptick in inflation, which it looks like we are, the Fed may look past that, given that this is going to be tariff-related and temporary,” said Jim Smigiel, chief investment officer at SEI.
Rate-cut bets have put the benchmark S&P 500 and the blue-chip Dow on track for their fourth straight month of gains, while the tech-heavy Nasdaq was poised to log its fifth consecutive monthly rise.
The domestically focused Russell 2000 index has benefited the most and outperformed the main indexes in August. It slipped 0.6% on Friday.
Meanwhile, a federal judge said she would fast-track hearings in Fed Governor Lisa Cook’s effort to block Trump from firing her.
Global economy bellwether Caterpillar declined after raising its annual estimate for tariff-related costs.
- Additional reporting, Reuters, Press Association
