European Stocks Close Weak Again As Rising Tensions In Middle East Hurt Sentiment

(RTTNews) - European markets closed weak on Thursday, extending previous session's decline, as rising oil prices amid escalating tensions in the Middle East raised concerns about inflation and interest rate hikes, prompting investors to largely refrain from picking up stocks.

Oil prices moved up north today amid supply concerns following fresh strikes on tankers in the Persian Gulf. News about U.S. President Donald Trump launching new trade probes targeting the EU and other economies, to look at replacing the reciprocal tariffs struck down by the Supreme Court last month, contributed as well to the weak investor sentiment.

In addition to following geopolitical news, investors also reacted to a slew of corporate updates.

Bank, aviation and hospitality sectors were among the major losers. Energy stocks gained thanks to rising oil prices.

The pan European Stoxx 600 slid 0.61%. The U.K.'s FTSE 100 closed down by 0.47%, Germany's DAX ended 0.21% down, and France's CAC 40 lost 0.71%. Switzerland's SMI lost 0.9%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Iceland, Ireland, Poland and Spain ended with sharp to moderate losses. Netherlands edged down marginally.

Finland, Norway, Portugal, Russia, Sweden and Türkiye closed higher.

Bank stocks were among the major losers in the UK market. HSBC Holdings and Barclays lost about 6% and 5.1%, respectively. Standard Chartered ended down by 3.7%, Lloyds Banking Group closed nearly 3% down, and Natwest Bank lost 2.5%.

Persimmon, which had some good outings earlier in the week, lost more than 6% today. Barratt Redrow, Easyjet, Melrose Industries, Diageo, Berkeley Group Holdings, IAG and Antofagasta lost 3%-4.7%.

M&G ended down by 3.59%. M&G reported full year 2025 IFRS profit after tax of 314 million pounds compared to a loss of 347 million pounds, prior year, mainly driven by improved short-term fluctuations in investment returns and reduced mismatches arising on application of IFRS 17.

Shares of travel operator On the Beach Group tanked after the company withdrew its guidance due to Middle East-related travel market disruption.

Rentokil Initial moved up by about 5.2%. Airtel Africa, SSE, BAE Systems, Centrica, BP, Shell, Severn Trent, National Grid, United Utilities, Sainsbury (J), LSEG, Admiral Group, BT Group, Tesco, Glencore and Coca-Cola Europacific Partners also closed notably higher.

In the German market, Deutsche Bank and Commerzbank lost about 6% and 3.8%, respectively.

Heidelberg Materials, Continental, Infineon, MTU Aero Engines, Siemens Energy, Bayer, Qiagen, Siemens, Merck, Porsche Automobil Holding and Fresenius also closed sharply lower.

Zalando soared nearly 10% after the company reported strong financial results for 2025, with double-digit growth across revenue, gross merchandise value, and profit as the retailer accelerates its AI-driven strategy.

Zalando recorded group revenue of €12.3 billion, up 16.8% year on year, while GMV rose 14.7% to €17.6 billion. Adjusted EBIT increased 15.6% to €591 million, with the group maintaining a margin of 4.8%

Brenntag moved up by about 6%. RWE climbed 4.3% after meeting its financial guidance for 2025. Reinsurer Hannover Re gained about 4.7% after reporting a rise in FY net income and confirming 2026 guidance.

Daimler Truck Holding moved up sharply after it guided for a broadly stable 2026 profit margin in its industrial business.

BASF, Symrise, Gea Group, Rheinmetall, Deutsche Boerse, E.ON, Munich RE, BMW, Henkel and Fresenius Medical Care also ended with solid gains.

In the French market, Pernod Ricard, ArcelorMittal, Societe Generale, BNP Paribas, Michelin, Accor, Safran, Credit Agricole, Airbus, Saint-Gobain and STMicroelectronics ended sharply lower.

Thales, Air Liquide, Edenred, Danone, Dassault Systemes, Carrefour and Engie closed with strong gains.

UK housing market confidence remained fragile and forward-looking sentiment turned more cautious amid the escalation of conflict in the Middle East, the Residential Market Survey results from the Royal Institution of Chartered Surveyors showed. The headline house price balance fell unexpectedly to -12% from -10% in January. The balance was expected to improve to -9%.