European Stocks Poised for Cautious Open

European stocks bounced from session lows but still closed in the red on Thursday, as threats of escalation by the US and Iran prolonged concerns of lower oil exports from the Persian Gulf. The Eurozone's STOXX 50 fell 0.7% to 5,695 and the pan-European STOXX dropped 0.3% to 596. US President Trump exchanged threats of escalation with Iranian officials and triggered a selloff in global risk on prolonged bets that the war will impact energy commodities for longer. Still, equities trimmed their losses on reports that Oman and Iran may coordinate a system to select tankers that can cross the Hormuz chokehold. Banks fell sharply on the pressure that the war has on the economy and credit demand, with UniCredit and BNP Paribas dropping 2.5%. Tech also was also pressured by the pivot away from speculative assets, with ASML dropping 2.4% and Infineon losing 3%. European stock exchanges will be close on Friday for Good Friday, and multiple bourses will extend the holiday to Monday.

Stocks in Europe declined on Thursday, with the STOXX 50 falling 1.2% and the STOXX 600 dropping 1.9%, as hopes for a swift resolution to the conflict with Iran faded following comments from US President Trump. He stated that the US operation was nearing completion and pledged more aggressive actions, but his remarks offered little new detail, providing neither a clear timeline for withdrawal nor a concrete plan to reopen the Strait of Hormuz. As a result, oil prices surged, climbing back above $105 per barrel. All sectors were in negative territory except for energy, while technology and industrial stocks led the declines. Among the worst performers were ASML Holding (-4.1%), Infineon (-4.4%), Siemens Energy (-3.7%), and STMicroelectronics (-3.5%). Despite Thursday’s decline, European stocks remain on track to end the week higher, with the STOXX 50 up 2.3% and the STOXX 600 gaining 2.7% so far. Markets in the region will be closed on Friday in observance of the Easter holiday.

European equity markets are set to open lower on Thursday, giving back gains from the previous session after President Donald Trump indicated that the Iran conflict would continue. In his rare prime-time address, Trump noted that the US would strike Iran “extremely hard” in the coming weeks, arguing that key military objectives were close to being achieved and the conflict nearing an end. However, he provided no timeline for an exit, leaving investors uncertain about the scope and duration of the campaign. The statement also drove oil prices higher, reigniting concerns over inflation. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were down 2% and 1.7%, respectively.