European stock markets fell on Friday, weighed down by geopolitical uncertainties in the Middle East. Investors were also closely monitoring a new round of company publications.
At the close, the Stoxx Europe 600 index lost 0.6% to 610.65 points, extending its losses to 2.5% for the week. In Paris, the CAC 40 and the SBF 120 both declined by 0.8%. However, the DAX 40 in Frankfurt fell by 0.1% and the FTSE 100 in London dropped by 0.75%.
By midday, most indices were showing gains. While the Dow Jones was down by 0.1%, the S&P 500 was up by 0.8% and the Nasdaq Composite gained 1.5%.
In Europe, the day ended with the U.S. Department of Justice dropping its charges against Federal Reserve Chair Jerome Powell, which is expected to facilitate the transition to his designated successor, Kevin Warsh.
Official Iranian media reported on Friday that the Minister of Foreign Affairs, Abbas Araqchi, would be visiting Pakistan. The discussions planned could be limited to bilateral exchanges with Pakistani authorities, with no clarity on whether they will lead to renewed dialogue with the United States.
“The arrival of the USS George H. W. Bush in the region is an undeniable sign that tensions will escalate before easing. As Russian playwright Anton Chekhov once remarked, if a gun appears in the first act, there’s a strong chance it will be used at some point in the play,” noted oil specialist PVM on Friday. They also highlighted the impact of the global economy being deprived of 10% to 15% of necessary oil each day the strait remains closed.
By 17:50, the June contract for North Sea Brent crude oil had risen by 0.2% to $99.67 per barrel.
The situation in the Middle East has affected consumer morale in France and business sentiment in Germany. Household confidence in France deteriorated in April, with the household confidence indicator dropping to 84 this month, the lowest since March 2022. In Germany, business sentiment also declined for the second consecutive month in April, with the IFO business climate index reaching 84.4, the lowest since May 2020.
Apart from geopolitical concerns, the session was driven by company earnings reports. In France, investors reacted negatively to Saint-Gobain and Valeo’s publications but welcomed those of Accor, Clariane, Seb, and Spie.
In the foreign exchange market, the euro gained 0.2% against the dollar, reaching $1.1714.
ACTIONS TO FOLLOW:
- ACCOR (+1.1%): Accor reported revenue growth in the first quarter despite challenges in the UAE due to the Middle East conflict.
- CLARIANE (+5.8%): Clariane confirmed its financial targets for 2026 following revenue growth in the first quarter.
- FORVIA (-3.8%): Forvia signaled the near-term disposal of its interior elements activities and maintained financial objectives for 2026.
- LISI (+3.4%): Lisi affirmed annual forecasts after strong growth in aerospace business offsetting an automotive decline.
- Nexity (+1.55%): Nexity reported lower first-quarter revenue but saw significant reservations and confirmed annual targets.
- SAINT-GOBAIN (-0.6%): Saint-Gobain maintained its 2026 margin target despite a revenue decline in the first quarter.
- SEB (+6.9%): Seb saw increased revenue and operational results in the first quarter and reaffirmed annual forecasts.
- SPIE (+6.4%): Spie anticipated improved financial indicators in 2026 despite lower organic production in the first quarter.
- URW (-0.6%): URW confirmed its profitability goal for 2026 after reduced activity in the first quarter.
- VALEO (-4.3%): Valeo met its 2026 objectives with first-quarter revenue at €5.1 billion, a slight decline from the previous year.
Agefi-Dow Jones The financial newswire
