European Stocks Fall for 7th Session, Risk of Energy Stagflation Looms
European stocks closed lower for the seventh straight session on Tuesday (April 28th), amid concerns that tight energy supplies could fuel the risk of stagflation. The Euro Stoxx 50 Index fell 0.3% to 5,843, while the Stoxx 600 weakened 0.3% to 607.
Sentiment was weighed down by the US-Iran deadlock over terms for ending the conflict, which extended the rally in energy prices—a commodity heavily imported by the European economy. This energy pressure kept inflation risks high and undermined the growth outlook, leading the market to believe Europe's monetary policy path would become more difficult. The decline occurred despite news of the UAE's withdrawal from OPEC and OPEC+, as the market focus remained on tight physical supplies and geopolitical uncertainty.
On the stock front, ASML and Siemens Energy fell more than 3% each, tracking global declines in AI hardware and electricity operator stocks after reports that OpenAI failed to meet internal targets resurfaced, raising questions about the sustainability of AI infrastructure spending. Air Liquide fell 3.2% after its quarterly earnings missed estimates despite signaling increased investment. Bayer plunged 4.6% after the US Supreme Court split in the Roundup case, maintaining uncertainty over litigation risks.
Source: Newsmaker.id
