Eurozone Stocks Extend Record High

European stock indices closed mixed on Thursday as support from lower inflationary risks weighed against sector-specific losses. The Euro STOXX 50 gained 0.5% to a new record of 6,331 and the STOXX Europe dropped 0.4% to 637 amid pressure from heavyweight pharmaceutical, miners, and energy producers. US President Trump signed the memorandum of understanding with Iran that suspends the war for 60 days and restores the flows of fuel tankers through the Strait of Hormuz, lowering energy prices and reducing concerns that the ECB would deliver more rate hikes this year. Banks were mostly higher after leading gains this week, with UniCredit and Intesa Sanpaolo adding 0.7%. Meanwhile, industrials rose sharply with Airbus, Safran, and Schneider adding close to 3%. Meanwhile, Infineon jumped 7% to track the recent rally for chip producers worldwide. On the other hand, SAP dropped 4.7% on software weakness, while German auto manufacturers and British pharmaceuticals and miners retreated.

European stocks traded mostly lower on Thursday, with the STOXX 50 near flat after a record high and the STOXX 600 down 0.7%, as investors digested policy decisions from the Bank of England and the US Federal Reserve, as well as the interim US-Iran agreement. The BoE voted 7-2 to maintain interest rates at 3.75%, as expected, citing uncertainty over the Middle East energy shock’s economic impact but expecting inflation to rise as costs spread. Meanwhile, the US Federal Reserve held interest rates steady on Wednesday, but new Chair Kevin Warsh signaled a possible rate hike to combat inflation. Globally, the US-Iran ceasefire pushed oil prices to three-month lows, easing inflation concerns. In individual stocks, Edenred surged 16% on takeover talks, Generali rose 0.8% on UniCredit’s stake plans, while EQT fell 0.5% after agreeing to buy Intertek. Infineon (+3.5%) and Aixtron (+1.5%) gained on tech strength, Airbus rose 2.3% on an upgrade, and Tesco fell 2% on slower Q1 sales.

European stocks showed mixed performance on Thursday as investors processed the US-Iran interim agreement and hawkish signals from the US Federal Reserve. The STOXX 50 rose 0.3% to a new record of 6,330 points, while the STOXX 600 dipped 0.2% to 638 points. The tentative US-Iran ceasefire, ending the Iran war and reopening the Strait of Hormuz, drove oil prices to three-month lows, easing inflation concerns. Meanwhile, the US Federal Reserve kept interest rates unchanged, but new Fed Chair Kevin Warsh hinted at a potential rate hike to curb inflation. Later, the Bank of England is expected to maintain rates, with policymaker dissent under scrutiny for any hawkish shifts. In individual stocks, BE Semi fell 0.4% despite raising long-term revenue and margin targets. Volkswagen dropped 0.5% amid reports of complications at its Osnabrueck plant tied to a key shareholder, while UniCredit gained 0.4% after approaching Delfin about increasing its Generali stake. Generali shares jumped 2.6%.