European equities slid for the week as STOXX 600 fell 1.5% to 606.92, driven by soaring energy costs tied to US Iran tensions. Analysts warned inflation is starting to bleed into consumer and producer prices, pushing markets toward at least two European Central Bank rate hikes by year end. The bond selloff mirrored the shift. Cyclical sectors and defence led the drop, with banks down 6% and materials off 5.1%, while select semiconductors and firms like Technoprobe bucked the trend.
European shares edged lower as U.S. tariff hike threats weighed on automakers, turning cautious for investors. Markets also turned to geopolitics, watching for signs of progress toward reopening the Strait of Hormuz—an outcome that could ease shipping and energy uncertainty. Traders balanced sector-specific tariff pressure against potential relief from improved Middle East developments.
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European markets stayed largely flat as investors geared up for pivotal central bank meetings. Oil prices edged higher, mirroring frustration over stalled US-Iran diplomacy. Losses in technology and consumer staples weighed on the pan-European index, while Germany’s DAX and Spain’s IBEX 35 managed small gains ahead of rate decisions.
European equities posted steep weekly losses as investors weighed Middle East conflict fears that could disrupt energy supplies, fueling both inflation and slower growth. The STOXX 600 fell to a two-week low, ending a four-week winning run. Most regional markets declined, while technology rose on strength from SAP. Healthcare and financials lagged, reflecting broad caution.
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