Europe stocks rebound stalls as U.S-Iran ceasefire comes under strain
Why it matters: The renewed U.S.-Iran tensions caused the pan-European Stoxx 600 index to fall 0.4%, impacting travel stocks like Lufthansa by 3.5%.
- European stocks saw a rebound stall, with the pan-European Stoxx 600 index trading down 0.4%, and major regional bourses like the U.K.'s FTSE 100 (down 0.1%) and Germany's DAX (down 0.9%) also falling.
- Travel and leisure stocks were particularly hard hit, with German firms Lufthansa and Tui each trading down 3.5%, giving up some of Wednesday's gains.
- Iran's parliamentary speaker Mohammed Bagher Ghalibaf accused the U.S. of violating the ceasefire within 24 hours, citing continued Israeli attacks on Lebanon, a drone in Iranian airspace, and denial of Iran's right to enrich uranium.
- U.S. President Donald Trump stated military forces would remain deployed until Tehran fully complies with the "real agreement," threatening a military response larger than anything seen before for any breach.
- Asian markets traded lower, with South Korea's Kospi down 1.53% and Japan's Nikkei 225 falling by 0.77%.
- Oil prices rose due to growing concerns over the 'fragile' US-Iran ceasefire (BBC Business), reversing an earlier plunge that had led to expectations of lower gas prices for Canadians (Globe and Mail Business).
European stocks, including the Stoxx 600, fell by 0.4% as the U.S.-Iran ceasefire quickly unraveled, with Iran accusing the U.S. of violations and President Trump warning of severe military repercussions. This renewed tension, following a strong rebound, sent Asian markets lower and caused oil prices to rise, reversing earlier drops that had promised lower gas prices for Canadians.
