European Stocks Extend Losses

European stocks closed lower on Tuesday, extending losses from the previous session with pressure from luxury brands and banks. The Euro STOXX 50 dropped 0.4% to 6,236 and the STOXX Europe 600 fell 0.3% to 634. Fuel prices surged further on dimmed expectations that oil supply from the Middle East could reenter the market in the near term, while European natural gas benchmarks maintained their elevated levels. The upside risks to inflation from high energy prices continued to drive markets to pile on bets of more rate hikes by the ECB this year, while the Fed is due to raise borrowing costs after tomorrow's closing bell. Higher yields pressured banks, with UniCredit and Deutsche Bank dropping more than 2%. Meanwhile, LVMH and Hermes dropped closed to 2.5% after retail sales from China did not meet expectations.

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.