Global financial markets faced turbulence on Friday as mounting trade war concerns, weak US jobs data, and inflation worries caused European stocks to slide. The European stock market downturn saw major indices closing lower, with auto stocks among the hardest hit.
Irish Market Declines Amid Investor Anxiety
In Dublin, the Irish stock index ended the week nearly 1% lower, reflecting the broader market unease. Bank of Ireland shares dropped by 1.6% to close at €9.69, while AIB managed a slight 0.5% gain, finishing at €5.93. Permanent TSB bucked the trend, rising 2.8% by the end of the trading session.
Food sector stocks also struggled, with Kerry Group and Glanbia losing 0.9% and 1.6%, respectively. Insulation manufacturer Kingspan fell by 1.18%, mirroring the cautious sentiment among investors. Meanwhile, leisure stocks showed mixed results—Dalata Hotel Group edged up by 0.75%, but Ryanair slipped 1.32% to close at €20.23.
UK Markets Feel the Pressure
The FTSE 100 declined by 0.3%, pulling back from its record high amid ongoing tariff uncertainty. The FTSE 250 mid-cap index slipped 0.8%, though it remained slightly up for the week.
Despite Thursday’s rally on corporate earnings optimism and hopes for further Bank of England rate cuts, Friday’s session saw a reversal as the central bank downgraded its 2025 growth forecast. Inflation is now expected to nearly double the bank’s 2% target, adding to concerns about the UK economy’s trajectory.
Notable market movements included Legal & General’s 1.2% rise after the insurer sold its US protection business for $2.3 billion (€2.1 billion) in cash to Japan’s Meiji Yasuda.
European Markets See Broad Losses
Across Europe, the STOXX 600 index declined by 0.4%, led by a 1.6% drop in auto stocks. German carmaker Porsche plunged 7.1%, marking its worst single-day loss since its stock market debut. The company cited the high costs of launching new models and battery-related expenses as key factors likely to dent its 2025 profits.
Other major European corporations faced challenges as well:
- L’Oreal fell 3.5%, reporting its slowest quarterly growth since the COVID-19 pandemic.
- Pernod Ricard slid 4.7%, with reports suggesting the spirits company is considering selling its G.H. Mumm champagne brand.
- Sweco surged 7%, leading the construction and materials sector, following strong Q4 earnings.
- Danske Bank climbed 7.8%, celebrating a record-breaking year of profits.
Wall Street Stumbles on Weak Jobs Data and Inflation Concerns
Across the Atlantic, US stocks also struggled on Friday following weaker-than-expected jobs data. Investors grew cautious as reports signalled a potential increase in inflation expectations, leading to speculation that the Federal Reserve may delay interest rate cuts until mid-year.
At mid-morning trading, the US stock indices saw notable declines:
- Dow Jones fell 203 points (-0.45%) to 44,545.15.
- S&P 500 dropped 32 points (-0.53%) to 6,051.41.
- Nasdaq slid 183 points (-0.93%) to 19,608.70.
Adding to market jitters, President Donald Trump’s proposed reciprocal tariffs stoked fears of escalating trade tensions. Meanwhile, Amazon.com declined 3.7%, with its cloud computing division, Amazon Web Services, underperforming and first-quarter forecasts failing to impress.
Outlook: Volatility Expected to Continue
With global trade uncertainty, inflation concerns, and central bank policies shaping investor sentiment, volatility in the markets is expected to persist. European stocks may remain under pressure as policymakers and businesses navigate these economic challenges.
Investors will be watching closely for further economic data releases and policy decisions that could offer clearer direction in the coming weeks.
