European Stocks Open Lower, Middle East Escalation Weighs on Sentiment
European stocks opened lower on Wednesday (March 11), with market participants monitoring the intensification of military operations in the Middle East. The pan-European Stoxx 600 index fell nearly 0.8% shortly after the open, while London's FTSE 100 fell 0.7%, Germany's DAX fell 1.2%, and France's CAC 40 fell 0.6%. Italy's FTSE MIB also fell 0.8%.
In Germany, Rheinmetall shares fell 4.2% at the open despite the company reporting full-year sales of 9.94 billion euros and a profit of 1.68 billion euros. The company said it was in a "prime position" to help the US replenish its inventory of missiles used in the war with Iran and expected increased spending on missile refueling and air defense.
Geopolitical tensions were a major driver of risk-off sentiment. US Defense Secretary Pete Hegseth warned on Tuesday that the US would launch its most intensive attack yet on Iran. US Central Command later stated that its forces sank several Iranian vessels—including 16 minelayers—near the Strait of Hormuz, amid reports that Tehran was attempting to mine the waterway.
US President Donald Trump further heightened market concerns with a tweet demanding that the mines in the Strait of Hormuz be “removed immediately,” and a claim that 10 inactive minelayers had been sunk and “more will follow.” This situation maintained uncertainty regarding energy security and global logistics routes.
Beyond geopolitics, markets were also digesting the earnings season for companies including Porsche, Henkel, and Geberit, as well as the release of German inflation data. In the US, stock futures were near-flat ahead of the CPI release, which is expected to rise 2.4% annually, a key determinant of interest rate expectations and the dollar’s near-term direction. (alg)
Source: Newsmaker.id
