Market Standoff: Geopolitical Tensions and Trade Uncertainty Trigger European Stock Slide
European markets faced a continuous slump due to uncertainties in global trade policies and rising geopolitical tensions. The STOXX 600 saw its longest losing streak in months, driven by doubts over an EU-US deal and geopolitical concerns involving the Middle East. Energy stocks surged amidst cautious market sentiment.
European equities plunged for the fourth day, marking an extended decline unseen in months, as investors reacted to uncertain trade policies and escalating geopolitical tensions. The STOXX 600 index dipped 0.3%, closing at its lowest in over a week, fueled by ambiguous U.S.-EU trade relations.
U.S. President Donald Trump indicated a willingness to delay trade deadlines, but markets remained unclear and cautious. While the U.S. managed a deal with China, issues like existing tariffs and structural imbalances persist without resolution. EU's recent efforts to present stronger trade proposals might not suffice before the impending tariff deadline on July 8, further unsettled by the U.S.'s strategic Middle East personnel movements amid Iranian tension.
Energy companies benefited from soaring oil prices, becoming market leaders. Conversely, airline and travel sectors slumped, coupled with Boeing's significant share drop following an Air India jet crash. Despite these, London's FTSE 100 saw modest gains, linked to the steady stance of the Bank of England and an economic slowdown influenced by subdued consumer spending and tariffs.
(With inputs from agencies.)
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