European Stocks Close Lower On Middle East War Concerns

(RTTNews) - Despite a good spell in positive territory before mid-afternoon, the major European markets closed in the red on Tuesday as investors chose to stay cautious ahead of the expiration of U.S. President Donald Trump's deadline for Iran to reopen the Strait of Hormuz.

Weak regional PMI data weighed as well on sentiment.

"Tuesday, 8:00 P.M. Eastern Time!" the U.S. President said in his Truth Social post. During a news conference on Monday, shortly after Iran rejected his proposal of a 45-day ceasefire, Trump threatened "complete demolition" of Iranian infrastructure.

Iranian state-run media quoted the regime as saying that it is not willing to accept anything short of a permanent end to the Middle East war, which so far claimed more than 3,500 lives, including at least 1,665 civilians.

With the warring nations continuing to engage in strikes, crude oil prices have surged higher, raising inflation and growth concerns, and possible monetary tightening by several central banks.

The pan European Stoxx 600 fell 1.01%. The U.K.'s FTSE 100 ended down by 0.84%, Germany's DAX lost 1.06% and France's CAC 40 slid 0.67%. Switzerland's SMI tumbled 1.48%.

Among other markets in Europe, Denmark, Finland, Iceland, Ireland, Netherlands, Poland, Spain and Türkiye closed notably lower. Austria and Belgium ended with modest losses.

Czech Republic, Greece, Norway and Russia finished on a positive note, while Portugal and Sweden ended flat.

In the UK market, Melrose Industries, Rolls-Royce Holdings, Marks & Spencer, Barratt Redrow, 3i Group, Babcock International, Compass Group, Spirax Group, Intercontinental Hotels Group, Halma, AstraZeneca, Lloyds Banking Group, GSK and Fresnillo lost 2%-4.3%.

Imperial Brands, Games Workshop, Metlen Energy & Metals, Scottish Mortgage, Berkeley Group Holdings, Lion Finance and BP gained 1%-2%.

In the German market, Heidelberg Materials shed 4%. Adidas, Qiagen, SAP, Zalando, Beiersdorf, Symrise, Merck and Vonovia lost 2%-3%.

Gea Group, Rheinmetall, Volkswagen, Porsche Automobil Holding, Infineon, Daimler Truck Holding, Continental, Siemens, Siemens Energy, BMW and Mercedes-Benz also declined sharply.

BASF climbed nearly 2%. Brenntag, Fresenius Medical Care and Hannover RE also ended notably higher.

In the French market, Stellantis fell 3.7%. Kering, Eurofins Scientific, Sanofi, Renault, L'Oreal, Accor, Michelin, Airbus, Safran, Dassault Systemes, Schneider Electric, Hermes International and Capgemini lost 1%-3%.

STMicroelectronics moved up 4.3%. Edenred gained nearly 4%, while Teleperformance and Publicis Groupe gained about 1.8% and 1.1%, respectively.

In economic news, Germany's S&P Global Composite PMI fell to 51.9 in March, down from 53.2 in February, marking the weakest private-sector expansion this year. The ongoing Middle East conflict has dampened growth in the service sector, while manufacturing output surged to a 49-month high, driven by supply chain disruptions that paradoxically boosted factory activity.

The HCOB Germany Services PMI was revised lower to 50.9 in March from a preliminary reading of 51.2, down from 53.5 in February. This marked the weakest growth in services activity since a contraction in August 2025.

The S&P Global France Composite PMI came in at 48.8 in March, revised higher from the preliminary 48.3 but down from 49.9 in February, signaling the fastest contraction in private sector activity since October.

The S&P Global France Services PMI fell to 48.8 in March 2026, revised upward from the initial estimate of 48.3 but down from 49.6 in February, indicating a deeper contraction in the services sector.

The S&P Global Eurozone Composite PMI was revised up slightly to 50.7 in March 2026 (from a flash estimate of 50.5), but remained below February's 51.9, signaling the weakest private-sector expansion since June 2025.

The S&P Global Eurozone Services PMI eased to 50.2 in March 2026 from 51.9 in February and close to the preliminary 50.1 estimate, marking the weakest performance since May last year.

Data from S&P Global showed the S&P Global UK Composite PMI was revised down sharply to 50.3 in March, below both the preliminary estimate of 51 and February's 53.7, marking the slowest business activity growth in six months.

The S&P Global UK Services PMI was revised lower to 50.5 in March from a flash estimate of 51.2, down from February's 53.9.

A report from the Society of Motor Manufacturers and Traders showed new car registrations in the UK rose 6.6% yoy to 380,627 in March 2026, following a 7.2% gain in February.

The euro area final composite output index posted 50.7 in March, down from 51.9 in February. This was the lowest reading since last July and above the flash estimate of 50.5, final survey data from S&P Global showed.