Global markets ended the week on a more positive note after a flurry of comments from the US and Iran sparked optimism that the conflict in the Middle East may be heading toward a resolution.
The price of oil tumbled and stock markets rallied higher after Iran declared it had reopened the crucial Strait of Hormuz shipping route.
Brent crude fell 11 per cent to just over $88 (€74.61) a barrel in afternoon trading on Friday as Iranian authorities said the strait has fully reopened for commercial traffic as a 10-day ceasefire involving Israel and Lebanon came into effect.
Bitcoin, meanwhile, climbed to its highest level since early February, breaking through the higher bound of the narrow range it has been trading in since the war broke out in late February and topping $78,000 for the first time since February 3rd.
DUBLIN
The Irish index of shares ended the week on a positive note, mirroring wider shifts in the global markets.
Euronext Dublin ended the week up more than 3 per cent, buoyed by a bounce in banking and travel shares.
Bank of Ireland and AIB both gained more than 1 per cent each before the close of the week.
Among travel stocks, Ryanair rose more than 7.5 per cent to close the week at €25.70.
Airlines had warned earlier that stocks of jet fuel could run low if the Strait of Hormuz, a conduit for a fifth of the world’s energy shipments, remained shut.
Irish Continental Group, meanwhile, added more than 3 per cent by the closing bell.
Property and construction stocks also saw a bounce, with Kingspan up 3.6 per cent, while home builders Glenveagh and Cairn also ended the week in positive territory.
Food groups Kerry and Glanbia also added value, gaining 2 per cent and 1.2 per cent respectively.
LONDON
The blue-chip FTSE 100 index closed 0.7 per cent higher at 10,667.63 points, clocking gains for a fourth straight week. The midcap FTSE 250 climbed 1.9 per cent, extending its winning run for three weeks.
Travel and leisure stocks advanced as crude prices dropped. Wizz Air gained above 7 per cent and EasyJet rose 6 per cent.
Among the top gainers on the day were Fresnillo, which climbed 6.4 per cent, while British Airways owner IAG added 6.2 per cent.
Oil giant BP fell 7.4 per cent and Shell dropped 5.6 per cent, among top losers.
Heavyweight banks advanced 2.3 per cent, with Barclays up 3.5 per cent, Standard Chartered rising 2.9 per cent and HSBC adding 2 per cent.
EUROPE
The STOXX 600 jumped more than 1 per cent and notched its fourth straight weekly gain on Friday.
The pan-European stock index climbed 1.6 per cent to 626.58 points, close to levels seen before the beginning of the conflict.
Euro zone short-dated government bond yields dropped sharply to one-month lows, while money markets scaled back bets on future ECB rate hikes.
Most regional bourses also moved higher, with Germany’s DAX, Spain’s IBEX 35 and France’s CAC 40 gaining about 2 per cent each.
NEW YORK
Wall Street stocks followed global indexes higher on Friday as optimism grew over a resolution to the conflict between the US and Iran.
The S&P 500, which reached fresh records this week, rose 1.15 per cent, to 7,115.31. The Dow Jones Industrial Average rose 1.95 per cent, to 49,524.91. The Nasdaq rose 1.15 per cent, to 24,378.97, and the Russell 2000 small cap index also rose to a record.
Energy stocks that benefit from high oil prices fell. Oil and gas names in Europe slid 4.5 per cent, followed by US majors Exxon Mobil and Chevron, which shed around 5 per cent each. Airline shares gained, with American Airlines up around 8 per cent.
In a different kind of drama, Netflix shares fell more than 9 per cent after the streaming service delivered a downbeat growth forecast and said chairman and co-founder Reed Hastings was leaving the company.
– Additional reporting: Reuters
