European Stocks Trade Mixed as Iran Conflict and Energy Pressures Weigh on Sentiment

European stocks ended Friday’s session in mixed territory as investors remained cautious amid ongoing geopolitical tensions linked to the Iran conflict. Sentiment across global markets was fragile, with traders closely watching developments in the Middle East and their potential impact on energy supply and economic stability.

Despite some optimism following remarks from U.S. President Donald Trump suggesting the war could be nearing an end, markets failed to gain strong upward momentum. A ceasefire between Israel and Lebanon also did little to boost confidence, as uncertainty continued to dominate trading decisions across Europe.

By mid-morning in London, the pan-European Stoxx 600 index was slightly above the flatline, reflecting a lack of clear direction. Major regional indices showed a mixed performance, with Germany’s DAX and France’s CAC 40 posting modest gains, while the UK’s FTSE 100 slipped into negative territory. Overall, the index was still on track for a small weekly gain, though weaker than previous weeks.

Energy markets also influenced investor caution, with oil prices easing and Brent crude staying below the $100 mark. Corporate earnings added further pressure to sentiment, as companies including Lufthansa and easyJet flagged challenges from rising fuel costs, while Ericsson reported a slight earnings miss but still managed to recover some losses during trading.

Meanwhile, investor attention turned sharply to France’s Alstom, which saw its shares plunge after withdrawing financial guidance and warning of weaker-than-expected profits. Analysts described the update as more concerning than earlier expectations, adding to broader concerns about corporate performance amid an uncertain global economic backdrop.

source: cnbc