European Stocks Wobble Amid Ceasefire Concerns and US Tariff Deadline
European stocks hit a stumbling block as the fragility of the Israel-Iran ceasefire and an approaching US tariff deadline weighed on investor sentiment. Despite a strong rebound, regional markets saw declines, led by Spain's 1.6% drop. Automotive stocks rose, while defence notes gained from NATO's spending pledge.
European stocks faced a setback as investors navigated the uncertain waters following the Israel-Iran ceasefire and an impending US tariff deadline. The pan-European STOXX 600 index lost 0.7%, marking a red day for most sectors, although defence stocks saw a rise due to NATO's military spending commitments.
Regional markets were not spared, with Spain recording a substantial 1.6% drop, stirred by defence budget concerns and cooled economic growth. Germany fell 0.6%, and France and Britain followed suit with 0.8% and 0.5% declines. Conversely, automotive stocks showed resilience, with Stellantis surging 3% after a ratings upgrade.
Amid these developments, the US-brokered Israel-Iran ceasefire remained under scrutiny. At the same time, European leaders hurried to secure trade agreements ahead of the US tariff pause deadline. On the other side of the pond, the US Federal Reserve adopted a cautious tone in its policy approach, adding to the economic uncertainty.
(With inputs from agencies.)
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