Markets remained volatile on Monday as tensions in the Middle East continued to dominate the news. The Dublin and London markets were closed for the May bank holiday on Monday.
Europe
European shares slipped, failing to build on a record rally in Asia, as carmakers declined following US president Donald Trump’s latest tariff threat. US equity futures wavered after the Wall Street gauges closed at new highs on Friday.
The Stoxx Europe 600 index was down around 0.6 per cent as the automobile and parts industries sank more than 1 per cent.
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Germany’s 10-year bond yield, the benchmark for the euro zone bloc, was last up 2 basis points at 3.052 per cent.
Mercedes-Benz Group AG had shed around 2.5 per cent to €48.6 shortly before markets closed. Bayerische Motoren Werke (BMW) AG was off 2 per cent at €76.26.
Trump said he would raise tariffs on European auto imports to 25 per cent, adding to woes for the sector after a tepid earnings season.
Futures on the S&P 500 were little changed while contracts on the Nasdaq 100 gained 0.2 per cent.
Brent crude whipsawed, initially dropping 2.4 per cent, then reversing those losses to trade at more than $110 (€94.14) a barrel. The fluctuations came after US President Doanld Trump said the US would begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday.
The announcement left shipping executives perplexed, as attacks continue and traffic remains at a near standstill.
Reports from Iran, later dismissed by Washington, claimed that the country’s forces had struck a US Navy vessel as it negotiated the contested Strait of Hormuz.
Benchmark Brent futures added $5 to $113.50 following the news. High oil and gas prices continue to prompt economists to warn on inflation.
US
US stocks were mixed in early trade, with the Dow Jones Industrial Average down around 0.5 per cent, the S&P 500 0.05 per cent lower, and the Nasdaq Composite up 0.12 per cent.
Investors are looking at another earnings-heavy week. Concerns remain about the scale of artificial intelligence capital spending investment, now at $751 billion for 2026, $80 billion above estimates at the start of the earnings season and 83 per cent above 2025 spending.
Meanwhile, a payrolls report due on Friday could influence US central bankers’ views on inflation and interest rates. Few expect the Fed to cut borrowing charges this year, while they have priced in likely increases in Europe.
Companies reporting this week include Advanced Micro Devices, Super Micro Computer, Palantir, Walt Disney and McDonald’s.
Berkshire Hathaway reported on Saturday that it was a net seller of stocks for the 14th consecutive quarter. The conglomerate, often viewed as a bellwether of the US economy, is closely watched for its insight into valuations and broader market conditions.
Investors are watching how its new chief executive, Greg Abel, will deploy its $370 billion war chest against a background of ongoing volatility and warnings that markets face a correction.
Separately, shares of GameStop dipped 2.4 per cent while eBay rose 5.5 per cent after the video game retailer unveiled a proposal to buy eBay for about $56 billion in a cash-and-stock deal.
Shares of logistics firms FedEx and United Parcel Service fell 6.5 per cent and 7 per cent, respectively, after Amazon.com said on Monday it was rolling out “Amazon Supply Chain Services”, opening up its logistics network for other businesses to use.
Cruise operator Norwegian dropped 7.7 per cent after slashing its annual forecast due to higher fuel costs. – Additional reporting: Bloomberg, Reuters
