Global Economy
European Shares Slip as PMI Data, Geopolitical Tension and Nvidia Earnings Weigh
European stocks slipped on Thursday as fresh PMI data signaled a slowdown in manufacturing, while geopolitical tension surrounding the US‑Iran standoff kept risk appetite low. Nvidia's strong earnings proved insufficient to revive sentiment, and oil prices nudged higher, adding modest inflationary pressure.
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European equity markets opened lower on Thursday, with investors stepping back after the sharp rally on Wednesday that was driven by hopes of a U.S.–Iran breakthrough.
Key European indices slipped: the French CAC 40 fell 0.09% to 8,110 points, the UK FTSE 100 dropped 0.51%, and Germany’s DAX slipped 0.12%. The broader EuroStoxx 50, FTSEurofirst 300 and Stoxx 600 were down 0.35%, 0.21% and 0.25% respectively, led chiefly by weakness in basic‑materials stocks.
In the United States, futures pointed to modest declines – the Dow Jones –0.23%, the S&P 500 –0.18% and the Nasdaq –0.26% – after a day of gains.
Two factors dominated the sentiment:
- First‑month PMI readings in the euro‑area came in below expectations, signaling a slowdown in manufacturing activity.
- Geopolitical headlines – President Donald Trump warned that the United States is ready to resume attacks on Iran if Tehran does not agree to a peace deal, while Pakistan’s army chief Asim Munir is scheduled to travel to Tehran for mediation talks.
- Corporate news – Nvidia’s (NASDAQ:NVDA) Q2 earnings beat forecasts, but the magnitude of the gain was not enough to offset broader risk aversion.
Oil prices edged higher, with Brent crude trading above $106 a barrel, adding a mild inflationary pressure on energy‑intensive sectors.
Overall, the market’s tone was cautious, with investors staying away from high‑beta assets until clearer signals emerge from both the manufacturing data and the Middle‑East diplomatic track.