European stocks have opened lower following Iran tensions, earnings reports, and central bank decisions.
- +European Markets Fall As Oil Prices Surge
European stocks opened sharply lower on Thursday as investors reacted to fresh developments in the Iran conflict and weighed a heavy slate of corporate earnings alongside looming central bank decisions.
European stocks opened sharply lower on Thursday as investors reacted to fresh developments in the Iran conflict and weighed a heavy slate of corporate earnings alongside looming central bank decisions.
The pan-European Stoxx 600 fell 0.4% by 8:40 a.m. in London (3:40 a.m. ET), setting a cautious tone across regional markets. Major indices in Paris, Frankfurt and Milan all traded in negative territory, while the U.K.’s FTSE 100 edged up 0.1%, outperforming its continental peers.
Sector performance was broadly weak. Autos led the declines, sliding 1.6%, followed by banks, down 1.1%, and financial services, which fell 1.2%. Oil and gas stocks were the standout gainers, rising 0.4% amid surging crude prices. Telecoms, basic resources, healthcare and technology sectors were slightly positive but largely subdued.
Oil markets remained a key driver of sentiment after Brent crude briefly hit wartime highs above $126 a barrel before easing. June futures for Brent rose 3.4% to $122.07 early Thursday, while U.S. West Texas Intermediate gained 1.2% to $108.15.
The rally came after reports that the US Central Command was preparing to brief President Donald Trump on potential military options against Iran, heightening fears of renewed conflict and a possible blockade of Iranian ports. Axios reported, citing two sources familiar with the matter, that contingency plans for possible military action were being prepared.
Shares in Stellantis plunged nearly 8% despite stronger-than-expected quarterly results. The company reported adjusted operating income of €960 million ($1.12 billion) for the first quarter, comfortably ahead of consensus estimates of €568 million. The automaker—whose brands include Jeep, Dodge, Fiat, Chrysler and Peugeot—also posted a 6% year-on-year rise in net revenues.
In contrast, Magnum Ice Cream Company surged 10.4% in early trading after reporting 4.5% organic sales growth year-on-year, reaching €1.77 billion.
Volkswagen slipped 1.7% after posting a 14% decline in profits compared with the previous year. The German automotive giant reported first-quarter profit of €2.5 billion ($2.92 billion), missing analyst expectations.
French lenders also came under pressure following earnings releases. BNP Paribas fell 4.2%, while Societe Generale dropped 3.7%. BNP Paribas reported a 9% rise in first-quarter profit to €3.22 billion, while SocGen posted net income of €1.69 billion, up 5.5% year-on-year.
Attention is now turning to central banks, with both the European Central Bank and the Bank of England due to announce their latest monetary policy decisions later on Thursday. Neither is expected to adjust interest rates, but investors will be closely watching forward guidance amid heightened geopolitical uncertainty linked to the Iran conflict.
Macroeconomic data is also in focus, with preliminary eurozone GDP figures for the first quarter and April inflation data due at 10 a.m. London time.
The earnings calendar remains busy, with results expected from Schneider Electric, Unilever, Glencore, ING, DHL Group, Credit Agricole, Standard Chartered, BASF, Ferrovial, Erste Group Bank, ArcelorMittal, Danske Bank and Air France-KLM, among others.
