European shares fall amid concerns over French budget

European shares fell on Wednesday amid concerns over French prime minister Michel Barnier’s ability to get his government’s budget plan over the line.
French far-right leader Marine Le Pen has been threatening to bring down France’s coalition government in a no-confidence vote over proposed tax rises and spending cuts in the 2025 budget. The pan-European Stoxx 600 index slipped 0.2 per cent.
The Iseq All-Share index fell 1.6 per cent to 9,452.80.
Banking stocks were out of sorts, with AIB down 2.5 per cent at €5.11 and Bank of Ireland off 2.7 per cent at €8.25 as sector followers fretted about the economic impact of US president-elect Donald Trump’s promised trade tariffs and monitored central bankers for hints on the outlook for interest rates.
While a fourth European Central Bank (ECB) rate cut since June is seen as in the bag next month, ECB executive board member Isabel Schnabel warned the organisation needs to be wary of cutting interest rates too far as it could backfire.
Corre Energy slid 9.1 per cent to 10 cent amid ongoing concerns about the renewable energy storage developer’s ability to raise fresh capital.
Dalata Hotel Group managed to edge 0.2 per cent higher to €4.38. The head of Eiendomsspar, a Norwegian investor in hotels and hotel groups that has accumulated a 5.45 per cent stake in Dalata, has contained potential speculation that it could amount to a strategic stake-build, saying sees it as a “financial investment” that would “hopefully provide a fair return over time”.
Of Irish interest, CRH reached a record high of £82.20 during the session, though it ended up closing down 1.4 per cent at €80.56.
The FTSE 100 index overall edged higher 0.2 per cent higher, while easing UK government bond yields supported interest rate-sensitive housing and property sector stocks. Housebuilders and real estate stocks climbed 0.9 per cent and 1.5 per cent, respectively.
Among single stocks, Anglo American gained 0.5 per cent after the miner sold more shares in its unit Anglo American Platinum (Amplats), raising gross proceeds of the equivalent of €504 million.
Aston Martin fell as much as 9 per cent to a more than two-year low after the luxury carmaker warned that annual profit could fall as much as 11 per cent on delivery delays and said it would raise new capital.
Pets at Home Group slumped 17 per cent after the retailer forecast modest growth in pretax profit for the year through March 2025, with demand lacklustre as pet owners reined in spending.
French stocks hit a more than three-month low on Wednesday as investors fretted about the fragile government’s ability to push through its budget, while continued worries over potential US tariffs kept European automobile stocks under pressure. France’s main stock index dropped more than 1 per cent during the session to hit its lowest since August. It closed 0.7 per cent lower.
Johnson Matthey slumped 11.7 per cent after the catalytic converter and pollution filter maker missed estimates for half-year profit.
Grifols fell 9 per cent after a report said Canadian investment fund Brookfield might drop its plan to take over the Spanish pharmaceutical firm.
The S&P 500 and the Nasdaq were lower in early afternoon trading, weighed by a decline in technology stocks, while investors focused on the US Federal Reserve’s next move following an in-line inflation reading.
Most megacaps fell, with Nvidia and Microsoft among the losers.
Dell and HP were also trading lower after each issued downbeat quarterly forecasts, adding to declines and were the top losers on the benchmark index.
Concerns include US president-elect Donald Trump’s proposed tax cuts and tariff policies, including his latest stance on imports from Mexico, Canada and China, which could push up prices, spark a trade war and weigh on growth globally.
Workday lost after forecasting fourth-quarter subscription revenue below expectations, hit by weaker client spending on its human capital management software. – Additional reporting, Reuters