European Stocks Open Lower, Middle East Tensions Weigh Down Sentiment
European stocks started June cautiously, with the STOXX 50 and STOXX 600 down around 0.1%. Investor sentiment remained fragile amid rising geopolitical tensions in the Middle East, keeping markets in a risk-off mode, although index corrections remained limited.
The main source of caution stemmed from the uncertainty surrounding the direction of the conflict between the US and Iran, including the lack of a long-term agreement to de-escalate the situation and fully reopen the Strait of Hormuz. Late last week, the US announced it had attacked several Iranian military sites, while Iran's Revolutionary Guard Corps claimed to have targeted US interests in retaliation, extending the risk premium on global assets.
At the stock level, pressure was seen on several major constituents: Unilever fell 1.0%, Airbus 1.3%, Safran 1.4%, and Intesa Sanpaolo 0.8%. Conversely, SAP rose 2.0% and Schneider Electric rallied 2.6%, leading the way, indicating a selective rotation into issuers deemed more defensive against macro volatility.
The energy sector moved positively, supported by rising oil prices, with Shell rising 0.8% and TotalEnergies 1.0%. Furthermore, EasyJet surged more than 11% after stating it would not accept a takeover approach from Castlelake, becoming an outlier amid a market that tended to be risk-averse. (asd)
Source: Newsmaker.id
