European equities have logged their longest losing run so far this year as escalating tensions between the United States and Iran pushed oil prices and bond yields higher. The pan-European Stoxx 600 index slipped 0.7% on Tuesday, marking its fifth consecutive session of declines. The last time the benchmark posted a losing streak of this length was back in November 2025.
Technology shares were the worst performers of the day, with hardware names such as Soitec and Austria Technologie & Systemtechnik AG leading the slide. In contrast, energy stocks advanced as Brent crude climbed above $90 a barrel, following a statement from US President Donald Trump indicating that no negotiations are currently underway with Iran. The pullback comes after a strong earnings season had propelled the index to record highs just weeks ago.
With the corporate reporting calendar now slowing down, investors are weighing the inflationary impact of higher oil prices against the implications of rising artificial intelligence spending. "The Middle East conflict continues to dominate market sentiment," said Emma Moriarty, portfolio manager at CG Asset Management Limited. "Clearly, low trading volumes can amplify market moves, and that is a defining characteristic of the current environment."
Trading activity across European exchanges is now hovering near its lowest level of the year, and thin summer liquidity threatens to magnify volatility further in the weeks ahead.
Comments