European Stocks Far Away, Still Looking for Direction
Both the STOXX 50 and STOXX 600 moved close to the flatline on Wednesday, as investors weighed ongoing geopolitical tensions and major central bank decisions. Markets continued to monitor the conflict between Israel and Iran, now in its sixth day, with no sign of a ceasefire.
Concerns persisted over the potential for escalation and the possibility of greater U.S. involvement, especially after President Trump called for Iran’s unconditional surrender. At the same time, traders remained cautious ahead of the Fed’s monetary policy decision. While the central bank is widely expected to keep the federal funds rate steady, attention will be focused on updated economic projections.
In Europe, the U.K. inflation rate eased slightly to 3.4% in May, though it remained near its highest level in more than a year. Sweden’s Riksbank cut interest rates by 25 bps as expected. In the corporate sector, Novo Nordisk (-1.7%), AstraZeneca (-1.4%), and Sanofi (-1.2%) were among the biggest decliners on the day.
Source: Trading Economics
