Stocks in Euro Area Hit 7-week Low

EU50 decreased to 6199.00 Index Points, the lowest since July 2026. Over the past 4 weeks, Euro Area Stock Market Index (EU50) lost 5.04%, and in the last 12 months, it increased 15.43%.

European stocks moved lower on Tuesday, extending losses from the previous session. The STOXX 50 fell 0.8% to low levels not seen in nearly two months, while the STOXX 600 declined 0.6% to three-month lows. Oil prices continued to climb, with Brent crude trading above $107 a barrel, adding to concerns over an already challenging inflation outlook. Bond yields also continued to rise, reaching multi-year highs and further weighing on equity valuations and investor sentiment. Banks were among the biggest laggards, with UBS down 3.6%, Deutsche Bank 3.5%, UniCredit 2.4% and HSBC 1.6%. Other major stocks also traded lower, with LVMH falling 1.8%, L’Oreal declining 1.1% and Siemens down 0.8%. On the other hand, ASML Holding rose 0.9%, recovering modestly after a sharp decline in the previous session. Thales (+1.5%) and Rheinmetall (+0.8%) also traded higher.

European equity markets were set to open little changed on Tuesday as cautious sentiment prevailed ahead of key central bank policy decisions this week. The US Federal Reserve and the Bank of Japan are widely expected to raise interest rates on Wednesday and Friday, respectively, while the Bank of England is expected to leave policy unchanged on Thursday. Traders also remained focused on rising oil prices, which added to inflationary pressures, while higher global bond yields further weighed on equity markets. In Europe, investors will monitor UK unemployment and German economic sentiment data, with no major earnings reports scheduled. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were hovering around the flatline.