European stock markets close lower after Trump threat and end of ceasefire
European stock markets closed sharply lower this Wednesday (8) amid the resurgence of tensions between the United States and Iran and statements by American President Donald Trump that the ceasefire is "over".
The Madrid Stock Exchange led the losses after the Republican stated that he no longer wanted commercial relations with Spain.
In London, the FTSE 100 closed down 1.66%, at 10,489.04 points. In Frankfurt, the DAX fell 2.35%, to 24,865.67 points. In Paris, the CAC 40 lost 2.18%, to 8,252.66 points.
In Milan, the FTSE MIB fell 1.22%, to 51,817.25 points. In Madrid, the Ibex 35 fell 2.76%, to 19,098.63 points. In Lisbon, the PSI 20 dropped 1.77%, to 9,085.24 points. Quotes are preliminary.
The pan-European Stoxx 600 index fell 1.76% to 634.90 points in the session, with the technology sector recording losses of 3.62%.
In the opposite direction, the energy sector advanced 1.39%%, supported by the jump in oil in the face of the possible end of the ceasefire between Washington and Tehran.
Trump signaled a possible expansion of the offensive this evening, while Iran promised to retaliate "twice as hard".
In addition to the new threats against Iran, the Republican commented this Wednesday, on the sidelines of the NATO (North Atlantic Treaty Organization) summit, that he "doesn't want anything to do with Spain. Please cut off all trade with Spain."
The drop in Madrid, however, was slightly mitigated by the 4.54% increase in the oil company Repsol.
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The military alliance reiterated its commitment to the defense of member countries and funding to support Ukraine in the war against Russia, but, despite the new agreements, the European defense sector suffered losses of 1.09%.
Still, HSBC analysts believe eurozone stocks will outperform other regions in the second half of 2026, with a recovering macroeconomic environment supporting European shares.
A stronger dollar against the euro will result in positive revisions to estimated earnings in euros, while the continent's banks look attractive, analysts say.
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Source: CNN