European stock markets fell on Thursday after a sharp rise the day before, driven by 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 outstanding results failed to impress the market.
In Paris, the CAC 40 fell by 0.09% to 8,110.02 points at 07:10 GMT, following a 1.70% increase on Wednesday. In London, the FTSE 100 declined by 0.51% and in Frankfurt, the DAX dropped by 0.12%.
The EuroStoxx 50 index fell by 0.35%, the FTSEurofirst 300 by 0.21%, and the Stoxx 600 by 0.25%, mainly weighed down by basic resources.
The futures contracts on Wall Street indicate a decline of 0.23% for the Dow Jones, 0.18% for the S&P 500, and 0.26% for the Nasdaq after a positive session the day before.
President Donald Trump stated on Wednesday that the US was ready to launch new attacks on Iran if Tehran did not agree to a peace deal, but hinted that Washington could wait a few days for “the right answers.”
Pakistan’s army chief, Asim Munir, is set to visit Tehran as part of Islamabad’s mediation efforts in the conflict, according to the Iranian news agency Isna.
Meanwhile, investors are staying away from risky assets as oil prices edge slightly higher, with Brent crude above $106 a barrel.
The market should 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 was slowing down, with significant cost pressures.
Sources told Reuters that a rate hike by the European Central Bank (ECB) in June was almost certain, amid concerns about a resurgence of inflation.
In corporate news, the European technology sector is down on Thursday, following Nvidia’s expected decline at the Wall Street opening as the semiconductor and AI giant’s better-than-expected results and forecasts failed to impress investors.
EasyJet, with uncertain prospects due to fuel cost increases and slowing bookings, is down by 0.25%.
Generali rose by 2.6%, the top Italian insurer posting quarterly results above expectations and confirming its objectives until 2027.
In Paris, Ubisoft plunges by 13.09% after announcing a record operational loss for its fiscal year 2025-2026.
Elior tumbled by 25% after lowering its annual outlook.
Airbus lost 2.58% and Air France-KLM 0.34% as the Paris Court of Appeal’s decision in the wrongful death lawsuit against the two groups, acquitted in first instance in 2023, is expected seventeen years after the 2009 Rio-Paris flight crash in the Atlantic.
(Authored by Claude Chendjou, Edited by Augustin Turpin)
