Stocks dipped and gold hit a fresh record on Monday as trade tensions between the US and Europe flared over president Donald Trump’s push to take control of Greenland.
Mr Trump said on Saturday he would impose an additional 10 per cent tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, starting February 1st. Those tariffs would climb to 25 per cent by June 1st unless the US was allowed to buy Greenland.
Big European Union states condemned the tariff threats as blackmail, and France proposed responding with a range of previously untested economic countermeasures.
Trump’s threat to impose levies on countries opposing his bid to claim authority over Greenland risks reigniting the volatility that rattled markets in the early months of his second term. The sell-off deepened after European officials signalled they were unlikely to back down and were considering retaliation.
Market reaction could also be exaggerated due to thin trading volumes during the Martin Luther King Jr Day holiday in the US.
Dublin
The Dublin market fell on Monday, losing 0.6 per cent to end the day at 12,988. The Euronext Dublin hit a low of 12,852 earlier in the day before bouncing back in the early afternoon.
Banking shares slumped, with AIB losing 0.7 per cent and Bank of Ireland down just short of 1 per cent. Permanent TSB declined more than 3.2 per cent, giving up some of the gains it made on Friday.
Insurer FBD, meanwhile, added 2.9 per cent.
Food groups Glanbia and Kerry declined over the session, with Glanbia down 1.5 per cent and Kerry shedding 0.5 per cent.
Building stocks also lost value, with insulation specialist down 1.7 per cent, and home builders Glenveagh and Cairn also ticking lower.
On the opposite end of the market, Ryanair gained marginally, while ferry group Irish Continental was 0.6 per cent higher.
London
London shares fell on Monday as tariff threats against Britain sent shock waves through markets, though a bright spot emerged as insurer Beazley surged to a record high on a sweetened takeover bid from Zurich Insurance.
The blue-chip FTSE 100 finished 0.4 per cent lower. The domestically focused mid-cap index fell 0.9 per cent, marking its steepest one-day decline since late November.
Losses rippled across London’s stock market, with automobiles and parts subindex sliding 1.8 per cent lower.
Luxury retailers too bore the brunt, with Burberry and Watches of Switzerland Group leading the losses with falls of 2.8 per cent and 2.3 per cent, respectively.
However, the non-life insurance sector provided a bright spot, cushioning the FTSE 100 from broader investor nerves. Beazley soared 42.9 per cent to a record high after Zurich Insurance Group offered 1,280 pence per share for the British speciality insurer.
Peers Hiscox and Lancashire also rose 9.1 per cent and 4 per cent, respectively.
Moreover, precious-metal miners surged 3.1 per cent as gold and silver hit record highs amid a flight to safety.
Among other movers, WH Smith jumped 11 per cent after the travel retailer named ex-Balfour Beatty chief Leo Quinn as executive chair, replacing Annette Court in a leadership shake-up aimed at reviving the business and restoring investor confidence.
Europe
European shares logged their biggest daily drop in two months on Monday as investors were rattled by Donald Trump’s threat of additional tariffs on eight European countries until the US is allowed to buy Greenland.
The pan-European STOXX 600 fell 1.2 per cent, with benchmarks in export-heavy economies such as Germany and France down over 1.3 per cent each.
Luxury, automobile and technology stocks were among the biggest losers, slipping 3 per cent, 2.2 per cent and 2.9 per cent, respectively.
A gauge for euro zone equity volatility jumped 3.75 points to its highest since November.
New York
The US markets were closed on Monday due to the Martin Luther King Jr public holiday. – Additional reporting: Reuters