European Stocks Reverse Gains

European stocks reversed early gains, with the STOXX 50 and STOXX 600 both falling 0.2%, as oil prices swung as traders assess Saudi Arabia’s move to restart a key pipeline while awaiting further diplomatic efforts between the US and Iran to end the conflict in the Middle East. Meanwhile, flash PMI data showed stronger-than-expected services activity across the Euro Area, Germany and France. AstraZeneca fell 1.1% despite securing European approval for its Trixeo inhaler as a maintenance treatment for asthma. Allianz dropped 2.1%, Anheuser-Busch InBev lost 1% and Siemens Energy fell 1%, while SAP gained 1.3%.

European stocks moved higher on Wednesday, with the STOXX 50 rising 0.5% and the STOXX 600 gaining 0.4%, extending their advance for a third consecutive session. The continued decline in oil prices remained a key driver of sentiment, offering further relief on inflationary pressures. Oil prices fell for a sixth straight day amid growing signs that a potential agreement between the US and Iran could help end the war and facilitate the reopening of the Strait of Hormuz. Meanwhile, flash services PMIs for the Euro Area, Germany and France came in way better-than-expected. The banking sector was higher, including HSBC (1%), BBVA (0.6%), Unicredit (1%) and BNP Paribas (1%). The luxury sector also traded in the green, including LVMH (1.3%), Hermes (0.9%) and Richemont (0.9%). Other notable gainers include SAP (1.8%). On the other hand, the telecommunication sector was under pressure, with Telefonica (-1.2%), Orange (-1.8%) and Vodafone (-1.8%) trading lower.

European equity markets were set to open higher on Wednesday as oil prices extended their decline on signs of progress in renewed US-Iran talks, easing concerns over higher inflation and interest rates. President Donald Trump said US officials had a “very good” meeting with Iranian envoys, while Tehran said it could reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade of Iranian ports. Sentiment was also supported by optimism surrounding Thursday’s upcoming US-China summit, which could produce new trade agreements, as well as a rally in technology stocks fueled by renewed interest in the AI trade. In Europe, investors will assess September manufacturing activity data from the Eurozone, Germany, France and the UK, while no major earnings reports are scheduled. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.3%.