The main European stock exchanges fell on Thursday after a sharp rise the day before due to hopes of an imminent agreement between the United States and Iran.
Investors are now cautious with the release of the first PMI indices in Europe, while Nvidia’s exceptional results were not enough to impress the market.
In Paris, the CAC 40 lost 0.09% to 8,110.02 points at 07:10 GMT, following a 1.70% increase on Wednesday. In London, the FTSE 100 fell by 0.51% and in Frankfurt, the Dax dropped by 0.12%.
The EuroStoxx 50 declined by 0.35%, the FTSEurofirst 300 by 0.21%, and the Stoxx 600 by 0.25%, mainly affected by basic resources.
Wall Street futures indicate a decline of 0.23% for the Dow Jones, 0.18% for the S&P 500, and 0.26% for the Nasdaq following a positive session.
President Donald Trump stated on Wednesday that the US was ready to launch new attacks against Iran if Tehran did not agree to peace, but suggested that Washington could wait a few days for “the right answers.”
The Chief of the Pakistani army, Asim Munir, will visit Tehran as part of Islamabad’s mediation efforts in the conflict, as reported by the Iranian news agency Isna.
Meanwhile, investors are staying away from risky assets as oil prices slightly rise, with Brent crude above $106 per barrel.
The market is expected to learn more about the impact of the war on businesses with the release of preliminary PMI indices in the Eurozone and the UK. Japanese data showed that manufacturing activity slowed down while cost pressures increased significantly.
Sources revealed to Reuters that a rate hike by the European Central Bank (ECB) in June was almost certain, amid concerns of inflation resurgence.
In business news, the European tech sector is down following Nvidia’s expected decline on Wall Street despite better-than-expected results and forecasts from the American semiconductor and AI giant.
EasyJet’s uncertain outlook due to rising fuel costs and booking slowdowns led to a 0.25% decrease.
Generali, the leading Italian insurer, rose by 2.6% after surpassing quarterly expectations and confirming its goals until 2027.
Ubisoft plunged by 13.09% in Paris after reporting a record operational loss for its fiscal year 2025-2026.
Elior dropped by 25% after lowering its annual outlook.
Airbus lost 2.58% and Air France-KLM declined by 0.34% as the Paris Court of Appeals decision in the involuntary manslaughter trial of the two groups, acquitted in the first instance in 2023, is expected seventeen years after the 2009 Rio-Paris crash in the Atlantic.
(By Claude Chendjou, edited by Augustin Turpin)
