European Stocks Head for Lower Open

Both the STOXX 50 and the STOXX 600 hovered around the flatline on Tuesday, failing to hold onto modest gains from the previous session, as optimism over efforts to protect shipping through the Strait of Hormuz faded. Uncertainty persists around the formation of an international coalition, with some countries appearing reluctant to align with US President Trump’s proposal. Meanwhile, Iran stepped up attacks on energy infrastructure across the Persian Gulf, pushing oil prices higher. Most sectors traded in negative territory, with only utilities and energy posting gains. Shares of ASML Holding fell around 1%, while LVMH (-0.7%), Hermes (-0.5%), SAP (-0.2%), Siemens (-0.7%), and Banco Santander (-0.6%) also declined. On the upside, Sartorius jumped nearly 5% to lead the STOXX 600 after its subsidiary, Sartorius Stedim Biotech, refined its strategy with a stronger focus on biopharma and set new mid-term growth targets.

European equity markets were set for a lower open on Tuesday as oil prices rebounded amid persistent concerns over supply disruptions in the Middle East. Iran has intensified attacks on energy infrastructure in the region, while most countries have so far resisted US President Donald Trump’s call for support in safeguarding commercial activity in the Strait of Hormuz. Meanwhile, investors will assess the ZEW economic sentiment survey for Germany and the Eurozone, along with final inflation data from Italy. Earnings are also due from Salvatore Ferragamo and Autolus Therapeutics. In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were both down about 0.4%.

European stocks closed higher on Monday, halting the sharp selling from the three previous sessions as markets reassessed the magnitude of the energy supply shock from the Persian Gulf. The Eurozone's STOXX 50 gained 0.4% to 5,740 and the pan-European STOXX 600 rose 0.5% to 599. Oil prices pulled back slightly after LPG tankers crossed the Strait of Hormuz towards India, reflecting Tehran's leniency on energy exports to selected countries that could ease the ongoing energy crunch that triggered inflationary concerns worldwide. Financial companies rose to track their country's bond prices, with Allianz and Deutsche Bank gaining 1.5%. Meanwhile, UniCredit added 0.5% after making a €35 billion offer for Commerzbank (8.5%), which was immediately opposed by the German government, a minority owner of the bank, but paving the way for UniCredit to increase its steak in the German lender rom the current 26% ownership. Lastly, chip producers rose worldwide, supporting ASML with a 1.5% increase.