European Stocks Fall for 7th Session

European stocks edged lower on Tuesday, with both the STOXX 50 and STOXX 600 slipping about 0.1%, marking a seventh straight session of losses for the former. Investor sentiment remained cautious as tensions in the Middle East persisted, the Strait of Hormuz stayed largely closed, and oil prices continued to climb. The White House said US officials were reviewing Iran’s latest proposal, but reiterated that key “red lines” remain in place for any agreement to end the eight-week conflict. Corporate earnings also drove market moves. Novartis shares fell 4.1% after reporting core operating profit and sales below expectations. BP rose 2.4% as its profit more than doubled, while Barclays declined 3.4% after results disappointed investors. Air Liquide dropped about 3% after a revenue miss. AstraZeneca (-1.1%) and Siemens Energy (-2.3%) were also in the red while Shell (1.7%), TotalEnergies (1.1%), and UniCredit (1.5%) booked strong gains.

European equity markets were poised to open little changed on Tuesday, as stalled efforts to resolve the US–Iran conflict and reopen the Strait of Hormuz kept sentiment subdued. US President Donald Trump and his national security team were reportedly skeptical of Iran’s latest proposal, which defers nuclear negotiations to a later stage. Investors are also bracing for key monetary policy decisions this week from the Federal Reserve, European Central Bank, and the Bank of England, while the Bank of Japan has already left its policy settings unchanged as it assesses the economic fallout from the Middle East conflict. On the data front, markets will focus on labor market figures from Spain and France, producer prices from Italy, and Eurozone consumer inflation expectations. In corporate news, earnings releases are expected from Airbus, BP, Barclays, and Novartis, among others. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures hovered around the flatline.

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.