European equities fell to their lowest level in nearly three weeks on Wednesday, weighed down by mixed corporate earnings, weak economic data, and ongoing geopolitical tensions in the Middle East.
The pan-European STOXX 600 index closed 0.6% lower, with the technology sector particularly weak, dropping 1.9%. Among major indices, Germany's DAX declined 0.27%, marking its seventh consecutive day of losses—the longest losing streak so far in 2024. France's CAC 40 fell 0.39%, while the UK's FTSE 100 underperformed with a drop of 1.16%.
On the economic front, data released by the European Commission showed the eurozone’s economic sentiment index fell to 93.0 in April, the lowest level since November 2020 and well below market expectations of 95.2. The indicator has declined for three consecutive months, reflecting growing concerns over the economic outlook amid Middle East conflicts.
Geopolitical tensions in the Middle East remained a key factor dampening market sentiment. Stalled U.S.-Iran talks and continued disruptions to shipping through the Strait of Hormuz pushed Brent crude prices near $114 per barrel. Analysts warned that rising energy costs could intensify inflationary pressures, potentially influencing the European Central Bank’s policy direction.
On the corporate front, sportswear brand Adidas surged more than 8% after reporting better-than-expected quarterly earnings, while UBS Group rose around 5% following strong financial results. In contrast, German biotech firm Qiagen plummeted over 10% after cutting its full-year profit forecast.
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