European markets experience largest weekly growth in over three months
In the week ending August 12, 2025, European stock markets demonstrated a mixed but generally mild positive performance overall. The US-China tariff truce extension and subdued US inflation data contributed to this trend, supporting mild gains in the UK and Ireland, a stable Eurozone index, and a slightly lagging German market.
The Dublin ISEQ index rose by 0.75% to 11,497 on August 12, with notable gains in shares like FBD (+5%) and AIB (+2%). However, some stocks such as Irish Residential Properties REIT and Uniphar declined. The Irish index of shares ended the week largely flat. Bank of Ireland ended the week at €12.73, with a gain of 1.1%. Shares in AIB ended the week at €6.98, with a gain of just under 1%. Permanent TSB was up 3.2%.
In London, the FTSE 100 increased modestly, up about 0.2% to around 9,147 on August 12. The more domestically-focused midcap FTSE 250 index rose 0.1%. The benchmark FTSE 100 in London closed 0.06% lower on August 12, but showed a daily rise of 0.22% on August 13.
Germany's DAX index ended the same period slightly lower, down about 0.23% to 24,024 on August 12 and 0.13% down on August 13. Shares of Munich Re fell 7.2% and were among the top decliners. Thyssenkrupp's shares rose 2.7% due to a potential spin-off of its defense division.
The broader Euro Area Stock Market Index (EU50) was up 0.45% to 5,361 points on August 13, 2025, despite a slight monthly decline. The index maintained a strong year-on-year gain of 13.4%. The STOXX 600 index rose 0.2% on the day, with weekly gains of 2.2%.
Elsewhere, Wall Street advanced, with the Dow Jones Industrial Average rising 0.27%, the S&P 500 gaining 0.62%, and the Nasdaq Composite increasing 0.79%. Expedia jumped 4.4% after raising its annual forecast for gross bookings and revenue growth. Ryanair showed modest gains, adding 0.27 per cent.
Investor sentiment was somewhat conflicted about the Fed's leadership overhaul, with Stephen Miran nominated as an interim pick for a Federal Reserve governor post. Pinterest tumbled 8.7% after missing analysts' estimates for second-quarter profit. Insulation specialist Kingspan finished the session at €71, 0.8% off the pace. Lotus Bakeries' shares added 10.9% following strong first-half results, while Gilead Sciences surged 8.6% following the raising of its full-year financial outlook.
In conclusion, the week saw a generally positive performance for European stock markets, with the US-China tariff truce extension and subdued US inflation data playing a significant role. However, the German market slightly lagged behind, and investor sentiment regarding the Fed's leadership overhaul remained conflicted.
- The Dublin ISEQ index, a key indicator of Ireland's personal-finance market, showed a mild increase on August 12, 2025, with gains in shares like FBD and AIB, but some stocks like Irish Residential Properties REIT and Uniphar declined.
- In the realm of finance, London's FTSE 100 and FTSE 250 indices displayed a modest increase on August 12, but the FTSE 100 closed slightly lower on the same day. However, it showed a daily rise on August 13.
- The technology sector was not left untouched as Wall Street, a symbol of the US business industry, advanced during the week, with indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite recording positive growth.
- In the field of education and self-development, Pinterest, a popular platform for lifestyle and entertainment, suffered a significant drop of 8.7% after missing analysts' expectations for second-quarter profit.
- The sports sector experienced mixed results, with Ryanair showing modest gains, while Lotus Bakeries' shares surged following strong first-half results. On the other hand, Gilead Sciences, a company often associated with healthcare and general-news categories, surged after raising its full-year financial outlook.
