European Stocks Mixed, Energy Weighs on Sentiment
European stocks closed mixed on Thursday (April 23), as uncertainty surrounding Middle East energy exports weighed on sentiment alongside a contrasting earnings season. The Euro Stoxx 50 Index fell 0.3% to 5,887, posting its fourth consecutive session of decline, while the Stoxx 600 edged up to 615.
Energy supply concerns intensified after reports that Iran and the US were both targeting commercial vessels in the region, keeping the risk of energy disruptions high. PMI data released during the session showed economic activity in the eurozone contracting, with rising energy prices cited as a major factor. These macroeconomic conditions weighed on the banking sector, with Santander, Deutsche Bank, and BBVA falling more than 2%.
At the issuer level, EssilorLuxottica fell 4.3% after revenue growth slowed in the first quarter, while SAP fell more than 6% ahead of its results release after the European market close. In contrast, L'Oreal jumped 9% after posting its strongest quarterly growth in two years, and Infineon rose more than 8% on the back of strong guidance from STMicroelectronics.
The market will now monitor developments in shipping and energy export risks in the Middle East, the direction of oil and gas prices relative to inflation, and the next wave of earnings reports, which could determine whether pressure on cyclical and banking stocks continues or begins to ease.
Source: Newsmaker.id
