STOXX 600 Rises as Israel-Lebanon Talks Lift Markets
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- STOXX 600 rose 0.1% to 618.05 points, with France's CAC adding 0.1% and London's FTSE 100 gaining 0.4%.
- Trump announced Israel-Lebanon talks would take place Thursday, lifting Middle East peace hopes and pushing the index near full recovery of losses since the conflict began.
- European equities have underperformed Wall Street counterparts as rising oil prices threaten energy-import-dependent economies.
- IG's Chris Beauchamp said European stocks attracted investors at the end of 2025 for their lower valuations and decent fundamentals, but exposure to rising energy costs now outweighs those positives.
- Barry Callebaut plunged 16% after the Swiss chocolate manufacturer lowered its full-year operating profit outlook.
- EasyJet fell 3.7% after warning of a bigger first-half loss, explicitly citing uncertainty from the Iran war as the reason bookings are lagging year-ago levels.
- Technology stocks led sector gains at +1.3%, while telecommunications fell 1% led by Deutsche Telekom's 1.7% drop, with banking and energy also declining.
Why it matters: Energy-import-dependent European economies face a structural headwind even as sentiment improves — IG's Beauchamp explicitly says the energy cost exposure now outweighs Europe's valuation appeal. The 16% Barry Callebaut plunge and EasyJet's Iran-war-cited warning show earnings season is delivering sharp single-name dispersion that goes beyond the headline index move.
