Major European Markets Close Weak Amid US-Iran Peace Talks Uncertainty

(RTTNews) - European stocks closed weak on Friday amid cautious moves by investors due to uncertainty about U.S. and Iran securing a lasting peace truce in the Middle East following the abrupt cancellation of talks between the two nations in Switzerland.

The cancellation happened following exchange of fresh hostilities between Israel and Hezbollah.

The pan European Stoxx 600 fell 0.24%. The UK's FTSE 100 ended down 0.35%, Germany's DAX drifted down 0.16% and France's CAC 40 lost 0.55%. Switzerland's SMI edged up 0.06%.

Among other markets in Europe, Czech Republic, Denmark, Greece, Norway, Poland, Portugal and Sweden ended higher.

Finland, Netherlands, Russia, Spain and Türkiye closed weak, while Austria, Belgium, Iceland and Ireland ended flat.

In the UK market, mining stocks tumbled. Antofagasta fell 6.1%, Fresnillo lost 4.65%, Endeavour Mining drifted down 3.3%, Anglo American Plc dropped 2.63% and Rio Tinto closed 2.57% down, while Glencore closed lower by about 1.6%.

BHP Group shares ended lower by 4.3% after the mining giant announced that it would record around $2.3 billion impairment charge in relation to its investment to date in the Jansen potash project.

Admiral Group, Weir Group, Tesco, Melrose Industries, Airtel Africa, Next, 3i Group, IAG, Persimmon, Marks & Spencer, JD Sports Fashion, Land Securities and Vodafone Group were among the other notable losers.

BP climbed 2.81%. National Grid moved up 1.8%, while LSEG, Informa, Experian, Babcock International, Relx, The Sage Group, Shell, M&G, Diploma and Hiscox also closed notably higher.

In the German market, Volkswagen ended 4.3% down. MTU Aero Engines closed nearly 2.5% down. Adidas, Scout24, Beiersdorf, Fresenius Medical Care, Deutsche Post, Deutsche Telekom and Henkel lost 1%-1.7%.

Rheinmetall moved up 2.7%. Bayer, Porsche Automobil Holding, Mercedes-Benz, Munich RE, Continental, RWE and BASF gained 1%-2%.

In the French market, Hermes International, EssilorLuxottica, L'Oreal, Saint-Gobain, Air Liquide, Kering, ArcelorMittal, Edenred, Airbus, Safran and LVMH lost 1%-2.3%.

Renault rallied nearly 4%. Sanofi, TotalEnergies, Dassault Systemes, Carrefour and Publicis Groupe posted moderate gains.

In economic news, data from Destatis showed Germany's producer prices increased at the fastest pace in three years in May.

The annual increase was primarily driven by higher prices of intermediate goods and energy. Intermediate goods prices advanced 4.2% and energy prices climbed 2.5%.

Prices of capital goods and durable consumer goods increased 2% each. Meanwhile, non-durable goods prices dropped 1.7%.

Excluding energy, producer prices rose 2.3% from the last year and grew 0.7% from April 2026. On a monthly basis, producer prices were up 0.3%.

Data from the Office for National Statistics showed retail sales in UK grew by more-than-expected 1.2% on a monthly basis in May, in contrast to April's 1% fall. Sales were forecast to climb 0.5%.

Excluding auto fuel sales, retail sales moved up 1.2% after a marginal 0.1% drop.

On a yearly basis, growth in retail sales accelerated to 3.2% in May from 0.1% in April and also came in stronger than forecast of 1.9%.

Elsewhere, survey data from the market research group GfK today showed that British consumer confidence remained at low level in June.

The GfK consumer confidence index held steady at -23. Confidence remains subdued and vulnerable to further economic or political uncertainty, GfK consumer insights director Neil Bellamy said.