European Stock Markets Weaken at Start of Q3/2026
European stock markets opened lower at the start of the third quarter on Wednesday (July 1st), after posting solid gains in the previous three months. The STOXX 50 and STOXX 600 indices each fell 0.3% as investors began to adopt a cautious stance following the previous market rally.
Market participants are still assessing the sustainability of the rally driven by optimism about artificial intelligence (AI). Meanwhile, investors are also monitoring signs of a stalemate in US-Iran talks after Iran announced it would not meet with US officials.
Market focus is also on the ECB Forum, where policymakers from major central banks, including the Federal Reserve and the European Central Bank, are scheduled to speak. Statements from these officials will be closely watched to gauge the direction of future interest rate policy.
In terms of stocks, the technology sector moved relatively flat. ASML Holding fell 0.4%, Infineon Technologies held steady, while STMicroelectronics edged up 0.1%. Other major stocks, including LVMH, Siemens, Hermes, and Santander, weakened, while Schneider Electric fell 2.5% after announcing its acquisition of Cognite Holding. On the positive side, Rheinmetall rose 2.9% and Airbus gained 1.6%, among the session's best-performing stocks.
