European stock markets close mostly lower with US-Iran agreement
European stock markets closed mostly lower this Thursday (28) despite the United States and Iran having reached a preliminary agreement to end the war, which needs the approval of North American President Donald Trump.
Investors also monitored economic data from the euro zone and the minutes of the last ECB (European Central Bank) monetary policy meeting.
In London, the FTSE 100 closed down 0.69%, at 10,432.70 points. In Frankfurt, the DAX fell 0.30%, to 25,102.61 points. In Paris, the CAC 40 lost 0.23%, to 8,188.87 points. In Milan, the FTSE MIB advanced 0.50%, to 49,825.32 points. In Madrid, the Ibex 35 dropped 0.53%, to 18,283.77 points. In Lisbon, the PSI 20 fell 0.53%, to 9,087.82 points. Quotes are preliminary.
The European market remained mostly falling throughout the session, pressured by concerns about the Middle East, even though news of a preliminary agreement between Washington and Tehran circulated.
According to Axios, the agreement provides for unrestricted navigation through the Strait of Hormuz and the naval blockade imposed by the US on the Persian country being gradually lifted, but international media points out that the terms have not yet been approved by Trump or Iranian authorities.
Among stocks, Saab rose 7.36% in Stockholm, after Sweden closed a new agreement that sees Ukraine receive 36 Gripen fighters from the defense company. In Milan, defense firm Leonardo's jump (+5.44%) helped support gains in the FTSE MIB, while the sector's sub-index rose 1.03% on the Stoxx 600.
The technology sector also rose 0.72%, with renewed enthusiasm for semiconductors and AI (artificial intelligence) in the US.
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On the macroeconomic radar, the euro zone economic sentiment index, which measures the confidence of corporate sectors and consumers, came in above what analysts expected.
The European Union will also expand the use of its trade defenses to protect industrial sectors from Chinese imports, the bloc's Industry Commissioner, Stéphane Séjourné, said this Thursday.
ECB leaders, in minutes, signaled in the morning a possible interest rate hike to maintain price stability.
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Source: CNN