Stoxx 600 Slips, SoftBank Rescues Tech Sector
European stocks closed lower on Monday (June 1st) as investors assessed the latest violation of the increasingly fragile US-Iran ceasefire, amid corporate news regarding a potential acquisition of British airline EasyJet. The pan-European Stoxx 600 index closed the first session of the month down around 1%, with most sectors in the red and major bourses in London, Frankfurt, Paris, and Milan also declining.
Market pressures mounted as hopes for a ceasefire agreement appeared to fade. Tasnim reported that Iranian negotiators had “stopped exchanging messages” with the US through mediators after Israel expanded operations in Lebanon. The report also suggested Iran would “completely” block the Strait of Hormuz, heightening market concerns about energy supplies.
Oil prices surged more than 6% on Monday, strengthening the energy inflation channel and dampening risk appetite in equities. In Europe, the British and German foreign ministers joined France in condemning Israel's escalation in Lebanon, while Israeli Prime Minister Benjamin Netanyahu said he ordered the military to expand its operations in Lebanon despite a ceasefire announced in April.
In the US, President Donald Trump wrote in Truth Social that Iran was "desperate to make a deal," while attacking criticism from political opponents and some Republicans. However, the market felt the clashing headlines were not enough to restore confidence, especially when news on the ground actually pointed to increasing risks of escalation.
Amid the broad weakness, the European technology sector was an exception. The Stoxx Europe technology index closed up 1.4% and hit its highest level since September 2020, after SoftBank Group pledged to invest 45 billion euros in France over five years to build AI infrastructure as part of a broader commitment. (Arl)
Source: Newsmaker.id
