European shares edged higher on Friday, wrapping up the month with gains as investors clung to hopes that a proposed deal to extend a Middle East ceasefire and reopen the strategic Strait of Hormuz could be finalised.The United States and Iran had agreed to extend their ceasefire and lift shipping restrictions as peace negotiations proceed, sources told Reuters, but US president Donald Trump had yet to approve the deal which, according to Iranian state media, has not yet been finalised.DUBLINThe Iseq Overall Index ended the week on a positive note, with gains in financial and travel stocks buoying the Irish market. AIB shares gained 2.2 per cent over the week to end the week at €10.16. That was a 1 per cent decline since the start of the week, and a 6.2 per cent gain over the month. Bank of Ireland also saw its shares rise, closing 1.8 per cent higher at €17.61. The shares have been largely flat in the past week, but over the month have added 8.3 per cent in value. Insulation specialist Kingspan ended the day 0.6 per cent on Friday, bringing it to a weekly gain of 4.5 per cent. In travel stocks, Ryanair closed at €25.13, up almost half a per cent on the day and a gain of 15.3 per cent in the past month. Ferries group Irish Continental was also higher over the final session of the week, closing up 3.2 per cent. LONDONUK indexes marked a second straight month of gains on Friday. The blue-chip FTSE 100 index ended down 0.2 per cent and posted monthly gains of around 0.3 per cent. The midcap FTSE 250 gained 0.4 per cent on the day and 4.3 per cent for May.Shares of Ocado soared 7.1 per cent after supermarket group Asda struck a deal with the technology firm to overhaul its online business across the UK.Shares of oil majors Shell and BP were mixed. A broader gauge of British energy stocks posted its biggest monthly drop in a year, as crude prices eased.Shares in UK retailers B&M, Currys, Dunelm, Wickes Group dipped in the range of 0.9 per cent and 2.4 per cent after Deutsche Bank downgraded their ratings, citing weaker consumer spending and confidenceEUROPEThe pan-European Stoxx 600 index rose by 0.1 per cent, securing a positive finish for the week.The benchmark index had come within striking distance of record highs earlier this week and secured a 2.5 per cent monthly gain, but recent escalations in the Middle East conflict capped further advances.Airline stocks are sensitive to energy prices, and Lufthansa and Air France both added over 2 per cent, while consumer discretionary stocks such as luxury added 1 per cent.CTS Eventim jumped 10.7 per cent after the German ticket firm said its revenue grew by 23 per cent in the first quarter of 2026, driven by strong demand for live entertainment.Orkla shares, meanwhile, fell 5.3 per cent after UBS downgraded the Norwegian consumer goods company to “sell” from “neutral” due to mounting pressures from cost inflation and the Middle East conflict.NEW YORKThe Dow Jones Industrial Average joined the S&P 500 in positive territory while the tech-heavy Nasdaq was essentially unchanged. US Treasury yields dipped.The S&P 500 is poised to notch its ninth straight weekly gain, its longest winning streak since the one that ended in December 2023.All three indexes are set to register monthly advances.The Dow Jones Industrial Average rose 218.86 points, or 0.43 per cent, to 50,888.48, the S&P 500 rose 9.06 points, or 0.12 per cent, to 7,572.73 and the Nasdaq Composite fell 2.43 points, or 0.01 per cent, to 26,915.85.– Additional reporting: Reuters
Markets end the week on the up
Traders buoyed by talk of deal to reopen Strait of Hormuz
TL;DRAI
European markets closed the week higher, with the Stoxx 600 up 2.5% for May and the S&P 500 on track for its ninth consecutive weekly gain, its longest streak since December 2023. The rally was driven by hopes of a US-Iran ceasefire deal to reopen the Strait of Hormuz, though unresolved negotiations and rising Middle East tensions continue to cap energy and equity upside.
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