Global Economy
European Shares Slip Amid Middle East Tensions‑Risk Appetite Squeezed
European equity markets opened lower on Thursday as investors grew cautious amid escalating military actions in the Middle East. Major indices such as the CAC 40, DAX and FTSE 100 all posted modest declines, while corporate news ranged from earnings beats at Publicis and Sodexo to a blockbuster $14.8 bn bid for Delivery Hero by Uber. The heightened geopolitical risk is weighing on risk‑on sentiment and could stall the price recoveries seen in June.
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European markets dip as Middle East conflict curbs risk appetite
European equity indices opened the day in modest decline on Thursday, reflecting investor wariness amid a fresh wave of military actions in the Middle East. The French CAC 40 slipped 0.31% to 8,356.21 points at 07:33 GMT, Germany’s DAX fell 0.29%, and Britain’s FTSE 100 dropped 0.41%.
Broader European gauges also eased: the EuroStoxx 50 lost 0.05%, the FTSEurofirst 300 fell 0.24%, and the Stoxx 600 slipped 0.20%.
The backdrop to the market weakness is a rapid escalation of hostilities. Washington carried out new strikes in Iran, and Tehran responded by targeting U.S. military installations in the region, calling the confrontation an “existential war.” The heightened tension threatens to derail the price stabilization seen across Europe and the United States in June.
Corporate news added further nuance. In Paris, Publicis gained 0.5% after raising its 2026 organic‑growth target and beating Q2 expectations. Sodexo rose 0.85% following the release of its 2027 outlook during an investor day.
Delivery Hero fell 1.05% after Uber launched a $14.8 billion (≈ €12.9 billion) acquisition bid for the German meal‑delivery platform. Meanwhile, London‑listed ROTORK surged 67% after announcing a major deal, while Swiss engineering giant ABB dropped 1.7% after unveiling a record‑size purchase of a UK automation specialist.
Technology stocks were slightly lower, but they have not yet mirrored the steep declines recorded by Asian peers earlier in the session. Taiwan’s TSMC, the world’s leading AI‑chip manufacturer, reported a record 77% Q2 profit jump, underscoring sustained demand for AI‑driven infrastructure.
Overall, the combination of geopolitical uncertainty and mixed corporate results kept risk‑on sentiment in check, suggesting a cautious trading environment for the rest of the week.