European Stocks Close Lower Awaiting Confirmation of 60-Day Ceasefire
European stocks closed lower on Thursday (May 28), failing to recover all of their early losses despite an Axios report fueling hopes for a US-Iran diplomatic breakthrough. The Stoxx 600 Index ended 0.5% lower, after initially falling by around 1% as market participants awaited confirmation on the ceasefire extension.
Axios reported that the US and Iran were nearing an agreement to extend the ceasefire for 60 days, sparking a rebound in stocks that had been under pressure throughout the war, including the interest-rate-sensitive consumer discretionary and real estate sectors. However, the report also emphasized that President Donald Trump had not yet given final approval, so the market reaction was likely measured.
At the stock level, Dassault Systèmes briefly fell as much as 7.2% after French AI company Mistral AI announced a new partnership with Airbus and BMW, rekindling concerns about potential disruption in the software sector. This movement highlights the sensitivity of software stocks to competitive changes in the AI ecosystem.
In contrast, Rheinmetall rose as much as 5% after winning a contract to supply military vehicles to the German armed forces. This contrast indicates a still-selective rotation: the market responds to broad geopolitical headlines, but issuer-specific catalysts remain the primary drivers at the individual level. (yds)
Source: newsmaker.id
