European Stocks Fall 0.4% Amid Surge in Oil Prices
European stocks closed lower at a two-week low on Thursday (April 23rd), with the STOXX 50 down 0.4% to 5,880 and the STOXX 600 down 0.4% to 613. Pressure stemmed from rising oil prices, which reignited inflation concerns, as markets digested the release of PMI data and a series of corporate earnings reports.
Sentiment was primarily driven by escalating tensions in the Strait of Hormuz, coupled with the absence of US-Iran peace talks, which heightened the risk of energy supply disruptions. Rising oil prices have re-energized the inflation narrative, which in turn could limit room for monetary policy easing and increase the sensitivity of stock valuations to interest rate expectations.
On the corporate side, L'Oréal surged 8% after reporting stronger-than-expected growth in its post-closing report on Wednesday. Nokia also rose 8% following a quarterly operating profit increase (comparable) that beat expectations, indicating the market remains selective in seeking positive surprises amidst the broader index weakness.
Defensive stocks were mixed: Roche held steady, while Nestlé rose 6% despite both reporting declines in first-quarter sales. In the healthcare and automotive sectors, Sanofi rose 1.7% after Q1 net sales rose 6.2%, while Renault gained 2.3% as Q1 revenue rose 7.3%.
Looking ahead, market participants will monitor whether the oil rally persists and further shifts inflation expectations, while widening performance divergences across sectors. Key variables to watch include developments in the Hormuz tensions, the direction of energy prices, advanced PMI readings, and the quality of surprises from the earnings season. (asd)
Source: Newsmaker.id
