European Stocks Slip Ahead of ECB-BOE
European stocks opened sharply lower on Thursday (April 30th) as investors digested the latest developments in the Iran conflict and a surge in oil prices. The Stoxx 600 Index fell 0.5% shortly after the London open, with pressure spreading across most of the region's major bourses.
Weakness was evident in the benchmark indices: Germany's DAX fell 0.7%, France's CAC 40 fell 1%, and Italy's FTSE MIB fell nearly 1.2%, while the UK's FTSE 100 moved relatively flat. Nearly all sectors were in the red, led by automotive, which fell 2.6%, followed by banks, which fell 1.4%, and financial services, which fell 1.1%. The oil and gas sector was the exception, rising 0.8%, while telecommunications gained slightly.
Brent prices hit wartime highs above US$126 per barrel after reports that the US military would brief President Donald Trump on options for action against Iran, fueling concerns about an escalating conflict and a continued blockade of Iranian ports. Axios reports that US Central Command will present a military action plan to Trump. June Brent futures rose 6.84% to US$126.10 per barrel, while WTI strengthened 3.14% to US$110.24.
Market focus shifts to the European Central Bank and Bank of England's monetary policy decisions scheduled for Thursday, with interest rates expected to remain unchanged but forward guidance closely scrutinized amid war risks and energy pressures. Investors also await the release of preliminary first-quarter Eurozone GDP and April inflation figures, as the earnings season continues with a host of major European companies such as Schneider Electric, Unilever, BNP Paribas, Glencore, ING, Volkswagen, Standard Chartered, BASF, Stellantis, and Air France-KLM. (asd)
Source: Newsmaker.id
