Khaberni - European stocks fell on Wednesday, continuing their losses for the third consecutive session, amid the impact of investor sentiment by uncertainty associated with the fragile truce between the US and Iran, along with the ongoing assessment of a series of European corporate earnings results.
According to Reuters, the European «STOXX 600» index closed down 0.4% at 613.88 points, while the major stock exchanges on the continent saw a collective decline, with the German «DAX» index losing 0.3%, and the French «CAC 40» index dropping 1%. On the other hand, German Ministry of Economy cut its growth expectations for 2026 by half, while it raised its inflation expectations.
The ongoing geopolitical uncertainty in the Middle East continued to pressure markets, with a slight rise in Eurozone bond yields, and oil prices reaching $100 per barrel, at a time when Trump's announcement of an indefinite ceasefire seemed a unilateral step, without confirmation from Iran or Israel about the commitment.
The senior analyst at «Swissquote Bank», Ipek Ozkardeskaya, said that rising energy prices negatively affect demand and economic growth expectations, adding that unless tangible progress is made in peace negotiations, the current market movements do not reflect a clear trend based on stable conviction.
In sector performance, the energy sector rose by 2.3% benefiting from rising oil prices, while the materials and technology sectors climbed by 1.7% and 0.6% respectively.
The stock of «ASM International» jumped 7.1% after the semiconductor equipment manufacturer's second-quarter revenue forecasts exceeded market expectations.
Tech and chip company stocks also rose, with German «Xcerra» and «Infineon» stocks each rising over 3%, while the «ASML» stock increased by 1%, and «BESI» by 1.9%.
In contrast, the travel and leisure sector declined by 2.1% under pressure from rising energy costs and geopolitical uncertainty, while the aerospace and defense sector lost 2.4%.
The telecommunications sector fell by 1.9%, with «Deutsche Telekom» dropping 4.8% after reports indicated that the company was considering a full merger with «T-Mobile US», in a move that could be one of the largest merger deals in market history.
Despite the declines, global markets recovered some of their losses during April, after a sharp sell-off that followed the war waged by the United States and Israel against Iran, although the European index is still below pre-war levels.
In the context of companies, the stock of «ABB» rose by 3.4%, and earlier recorded its highest level ever, after raising its annual sales expectations.
In contrast, the stock of «Reckitt», the manufacturer of «Dettol» soap, fell 4.6%, after its earnings results came below expectations, and it warned of a decline in profit margins during the first half of the year.
