Stoxx 600 Rebounds Slightly, But Weekly Remains in the Red
European stocks are headed for their deepest weekly decline since April as the war in Iran shows no signs of abating. The Stoxx Europe 600 Index rebounded slightly on Friday (March 6), rising 0.2% as of 8:22 a.m. London time, but still posted a weekly decline of around 4.3%.
The energy sector provided support, as Brent held above US$85 per barrel while maritime traffic in the Strait of Hormuz was considered virtually halted. The rise in energy helped cushion the overall pressure on the index, although volatility remained high.
Regional benchmarks swung in a downward spiral as markets weighed the impact of higher oil prices on inflation and the interest rate outlook. The conflict entered its seventh day, with Iranian missile and drone attacks targeting at least five countries in the Middle East, while Israel launched its 12th wave of airstrikes on Tehran.
At the stock level, Zealand Pharma A/S plunged 32%—its largest intraday drop on record—after mid-stage clinical trial results for its obesity drug candidate developed with Roche Holding AG disappointed the market.
Barclays noted that the de-risking process is still proceeding in an "orderly" manner, with no indication of widespread panic selling. The market is now tending to maintain a defensive stance while monitoring energy price dynamics, conflict developments, and the sensitivity of interest rate expectations to inflationary pressures from oil.
Source: Newsmaker.id
