European Stock Markets Rebound as Healthcare Stocks Surge

European stock market trends saw a turnaround on Wednesday as shares reversed earlier declines, bolstered by a strong performance in the healthcare sector. Meanwhile, Wall Street remained under pressure, with weak tech stock performance and ongoing concerns over trade tensions affecting investor sentiment.

Dublin Market Holds Steady with Airline Gains

Ireland’s ISEQ index remained flat, stabilising after a 1.1% gain the previous session. Banking stocks saw minimal movement, with AIB and Bank of Ireland closing at €5.72 and €9.54 per share, respectively.

One of the notable gainers was Ryanair, which climbed nearly 1% to €20.50 per share. The airline reported a 2% increase in January passenger traffic, though growth was tempered by delays in Boeing aircraft deliveries.

In the homebuilding sector, Glenveagh and Cairn Homes saw moderate gains, rising 0.6% and 1.3%, closing at €1.70 and €2.31 per share, respectively. Meanwhile, Kingspan fell over 2% to €65.15 per share.

London-listed DCC, despite meeting market expectations for its third-quarter profits, experienced a 3.5% decline due to weaker consumer technology demand across Europe.

European Stocks Recover as Banking Sector Moves

The pan-European Stoxx 600 climbed 0.4%, while the blue-chip Stoxx 50 added 0.2%. Banking stocks were among the top movers, with Spain’s Santander surging after announcing a €10 billion buyback programme for 2025.

However, not all lenders fared well. Italy’s Intesa Sanpaolo dropped 0.8%, despite strong earnings of €8.7 billion in 2024 and an improved 2025 outlook. Similarly, BNP Paribas slid 1% despite a 15% increase in Q4 profits. Other banking movements included BBVA, up 0.4%, while ING Groep dipped by 0.5%.

London Stocks Rise on Rate Cut Hopes

Optimism over an expected Bank of England rate cut fuelled gains in the UK market, with the FTSE 100 and FTSE 250 both climbing over 0.5%.

Healthcare stocks led the rally, with GSK surging 7.6% after posting stronger-than-expected Q4 results. However, the mining sector was mixed despite rising gold prices; Rio Tinto gained 0.4%, while Glencore and Antofagasta recorded minor losses.

Wall Street Struggles with Tech Weakness and Trade Concerns

Across the Atlantic, Wall Street faced a challenging session, as tech stocks slumped and Treasury yields declined. The S&P 500 and Nasdaq slid due to disappointing earnings reports and persistent worries over trade disputes.

Tech giant Alphabet was the biggest drag, falling over 7% due to weaker-than-expected cloud revenue growth and a planned $75 billion (€72 billion) AI investment. Meanwhile, Nvidia rebounded 3.8% following a steep decline last week, whereas AMD plunged nearly 9%.

Adding to investor concerns, reports surfaced that China’s antitrust regulator may investigate Apple, causing the company’s shares to dip 1.2%.

Market Outlook

While European markets found relief in healthcare and banking gains, concerns over trade tensions and tech sector volatility continue to shape global investor sentiment. With the Bank of England’s rate decision on the horizon, further market fluctuations are expected in the coming days.