European Shares Tumble As Hormuz Ceasefire Collapses

(RTTNews) - European stocks fell on Wednesday, extending losses from the previous session as renewed Middle East tensions fueled concerns over inflation and the outlook for central bank policy.

Oil prices and bond yields surged after U.S. President Donald Trump declared the Iran ceasefire "is over" at the NATO summit. Iran's Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait, hours after the U.S. launched a wave of military strikes on Iran.

Investors also await the release of the minutes of the first Federal Reserve meeting chaired by Kevi Warsh for fresh insights into the Fed's rate trajectory.

The pan-European Stoxx 600 slumped 1.7 percent to 635.27 after falling 0.7 percent on Tuesday.

The German DAX fell 2.2 percent, France's CAC 40 gave up 2.1 percent and the U.K.'s FTSE 100 was down 1.5 percent.

IG Group Holdings tumbled 3 percent after the British online trading firm announced a proposal to establish a new holding company in Jersey.

Vistry plummeted 10 percent after the housebuilder warned of a first-half loss and outlined plans to slim its business.

Student accommodation provider Unite Group declined 2.8 percent after saying it expects its annual rental growth to be slightly down on previous expectations.

Developer and investor Hammerson plunged 4.2 percent as it announced the sale of £69m of non-core assets.

Energy giant BP Plc jumped nearly 4 percent and Shell advanced 1.7 percent as Brent crude prices rose above $76 per barrel for the first time in two weeks on concerns about prolonged disruptions to supply.

Kering fell 2.5 percent. The French luxury goods group announced that its Italian fashion house Gucci has entered into a 50 -year exclusive beauty license agreement with French cosmetics and beauty products giant L'Oreal Co. L'Oreal shares were down 1 percent.