European Stocks Weaken, Oil and Middle East Volatility Weigh on Sentiment
European stocks fell on Thursday (May 28), with the STOXX 50 down 0.3% and the STOXX 600 down 0.5%, as market volatility persisted amid Middle East tensions and persistently sharp oil price fluctuations. Oil prices, which remain high compared to pre-conflict levels, maintained concerns about energy inflation and weighed on risk appetite.
In recent developments, reports of the US and Iran launching new attacks have kept investors on edge. The underlying trend is clear: geopolitical escalation is increasing energy risk premiums, and surging energy costs could potentially limit the scope for policy easing, potentially leading to riskier assets like equities losing ground.
The decline was led by the luxury, cyclical, pharmaceutical, and financial sectors. Several major stocks fell, including HSBC (-1.4%), Novartis (-1.8%), AstraZeneca (-2.6%), Bayer (-2.1%), LVMH (-1.5%), Hermès (-1.8%), and Intesa Sanpaolo (-1.2%), confirming the pressure spread across both defensive and cyclical stocks.
On the other hand, the technology sector was relatively resilient. ASML (+0.5%) and STMicroelectronics (+2.5%) rose, while Shell (+0.3%) also rose, helping to stem further declines in the index. The market's next focus remains on the direction of oil prices, the intensity of the escalation in the Middle East, and whether energy volatility begins to subside or increases again. (asd)
Source: Newsmaker.id
