European Stocks Fall, Trump Doubts Iran Ceasefire
European stocks opened lower on Tuesday (May 12th) after market concerns about a war in Iran resurfaced, following US President Donald Trump's statement casting doubt on the sustainability of the ceasefire. The Stoxx Europe 600 Index fell around 1% at 8:25 a.m. London time, reflecting a shift in sentiment to a more defensive stance.
In the UK, the FTSE 100 fell 0.9% as political pressure on Prime Minister Keir Starmer increased. JPMorgan analysts believe British banks such as Lloyds, NatWest, and Barclays face the risk of higher taxes if there is a leadership change, adding to domestic factors weighing on the UK stock market.
On the corporate front, Siemens Energy fell 2.3% after Bernstein analysts highlighted weakening margins in the company's gas unit. This movement added to the pressure on the index, amid stock selection based on earnings quality and margin resilience as energy costs potentially remain high.
In commodities, Brent rose 1.9% to around US$106 a barrel after Trump called the Iran deal on "massive life support" after rejecting Tehran's latest peace offer. The main transmission channel is that higher energy prices risk maintaining inflationary pressures and limiting the scope for policy easing, although the European earnings season has been solid so far. The market will be monitoring the direction of the conflict in the Middle East and the sensitivity of energy prices to inflation expectations. (asd)
Source: Newsmaker.id
