European Markets Under Pressure; Conflict and Tech Stocks Weigh Down Indices
European stock markets traded lower on Wednesday (July 29) as Middle East tensions flared up again. The STOXX 600 index fell 0.3%, despite strong earnings reports from several companies.
Germany's DAX index dipped 0.1%, and France's CAC 40 fell 0.6%. The UK's FTSE 100 managed a 0.3% gain, while Spain's IBEX 35 dropped 1.7%.
Market sentiment soured after the United States and Saudi Arabia struck Iran-backed groups in Iraq. The strikes were in retaliation for a drone attack on Saudi oil facilities.
The tensions pushed Brent crude prices up by more than 3%, reigniting concerns about energy-driven inflation. Government bond yields also remained elevated ahead of the Federal Reserve's interest rate decision.
The Fed is expected to keep interest rates unchanged, though the market sees a roughly one-in-three chance of a surprise hike or hawkish rhetoric. This uncertainty has prompted investors to trim their exposure to risk assets.
European technology stocks also came under pressure after SK Hynix's earnings report disappointed the market. Concerns regarding AI valuations and the scale of technology spending are likely to continue weighing on the markets ahead of upcoming reports from Microsoft and Meta. (arl)
Source: Newsmaker.id
