European Stocks Close Wednesday in Red
The continent-wide STOXX 600 benchmark retreated 0.35%, shedding 2.15 points to settle at 613.88. Germany's DAX shed 0.31% to close at 24,194.9, while the UK's FTSE 100 eased 0.21% to 10,476.46.
Losses were broader across southern and western Europe. France's CAC 40 was the hardest hit among major indices, falling 0.96% to 8,156.43. Italy's FTSE MIB edged down 0.25% to 47,785.46, and Spain's IBEX 35 dropped 0.75% to 18,006.4. The euro also weakened against the dollar, slipping 0.23% to 1.1717 as of 1730 GMT.
The gloom was compounded by Berlin's decision to slash its 2026 economic growth forecast in half — from 1% down to just 0.5% — while also trimming its 2027 outlook to 0.9% from 1.3%. German authorities attributed the deterioration directly to the Middle East conflict and the effective closure of the Strait of Hormuz, which has driven up costs for both households and businesses. Berlin simultaneously raised its inflation projections, now expecting consumer prices to climb 2.7% this year and 2.8% in 2027, as surging energy and raw material costs ripple through the wider economy.
Investor confidence remained on edge following US President Donald Trump's announcement Tuesday that Washington would prolong its ceasefire with Iran — contingent on Tehran producing a "unified proposal" — while leaving the naval blockade firmly in place. Markets continued to weigh whether the truce would hold and whether any diplomatic progress could meaningfully ease the strain on energy supplies and shipping flows through the vital waterway. Climbing oil prices pushed eurozone bond yields upward and kept risk appetite subdued across European equities.
On a separate front, the UK's annual inflation rate climbed to 3.3% in March, accelerating from 3% the previous month, as higher energy costs continued to filter through to consumer prices.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
