European Stocks Fall for 6th Session

European stocks closed lower for a sixth session on Monday on further pressure from high energy prices and its impact on the macroeconomic backdrop for major companies. The Eurozone's STOXX 50 dropped 0.4% to 5,861 and the STOXX 600 fell 0.3% to 609. Reports suggested Iran has presented the US with a new proposal aimed at reopening the Strait of Hormuz and ending the conflict, while postponing nuclear negotiations to a later stage. Still, flows through the chokepoint were halted and energy prices maintained their higher level. The pro-inflationary risks are expected to make the ECB a hawkish tilt in their rate hold this week, with multiple rate traders pricing a hike still this quarter. Tech shares sank, with ASML and Prosus dropping 3% and 2%, respectively. Also, Siemens Energy sank 5.5% to trim its rally from last week.

European stocks edged slightly higher on Monday, with both the STOXX 50 and STOXX 600 gaining around 0.1%, as investors kept a close watch on developments in the Middle East. According to Axios, Iran has presented the US with a new proposal aimed at reopening the Strait of Hormuz and ending the conflict, while postponing nuclear negotiations to a later stage. The report, citing a US official and two informed sources, raised cautious optimism that diplomatic efforts could resume and potentially lead to a resolution. Meanwhile, investors are preparing for a busy week of major central bank decisions, including announcements from the Fed, the ECB, and the BoE. On the macroeconomic front, German consumer confidence fell to a three-year low, highlighting ongoing concerns about the region’s economic outlook. On the corporate front, Siemens (1.5%), Schneider Electric (1%), and UBS (1.3%) booked solid gains while ASML Holding (-0.9%), Nestle (-1%), and Unilever (-0.7%) were lower.

European equity markets were set for a muted open on Monday as investors weighed the outlook for renewed US–Iran negotiations amid mixed signals. According to Axios, Iran has presented the US with a new proposal to reopen the Strait of Hormuz and end the conflict, with nuclear talks deferred to a later stage. At the same time, President Donald Trump cancelled plans to send senior envoys for a second round of negotiations, while Tehran reiterated it would not engage under threats or blockade conditions. In Europe, attention will turn to Germany’s GfK Consumer Confidence report for further insight into the region’s economic outlook. Investors are also preparing for a busy earnings calendar this week, with results due from major firms including Deutsche Boerse, Airbus, BP, Barclays, and TotalEnergies. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were little changed.