European Stocks Mixed, US-Iran Deadlock Keeps Sentiment Fragile
European stock markets opened mixed on Monday (May 11), with investors weighing the latest impasse in peace negotiations between the United States and Iran, which has again increased geopolitical risk premiums.
The pan-European Stoxx 600 index hovered around flat shortly after the London open. The UK's FTSE 100 rose around 0.3%, while Germany's DAX edged down nearly 0.1%. France's CAC 40 weakened nearly 0.5%, and Italy's FTSE MIB fell around 0.1%.
Most regional sectors were in the red, but oil and gas and technology stocks posted gains of around 0.9% and 1.1%, respectively. This pattern reflects selective rotation: investors tend to reduce exposure to cyclical sectors while maintaining positions in sectors sensitive to energy prices and certain defensive themes.
Global sentiment entered the new week in fragile condition after US President Donald Trump called Iran's counter-proposal to end the war in the Middle East "unacceptable." Iran's semi-official Tasnim news outlet reported that Tehran is demanding an end to the war on all fronts and the lifting of sanctions, while Israeli Prime Minister Benjamin Netanyahu asserted that the conflict with Iran is "not over" as the US-Israel deal seeks to curb Tehran's nuclear ambitions.
In line with these developments, oil prices strengthened and US stock futures moved lower overnight, confirming a classic geopolitical contagion: energy supply risks push oil higher, which in turn increases inflation uncertainty and weighs on riskier assets. Market focus is also on Trump's trip to China this week to meet President Xi Jinping, amidst trade, rare earth export controls, and global geopolitics, while Europe has no major data releases or earnings season on Monday. (asd)
Source: Newsmaker.id
