FILE PHOTO – Stock traders follow the price trend on their monitors on the trading floor in Frankfurt. (is associated with: «European stocks close mixed amid earnings, Middle East tensions») Boris Roessler/dpa
European stocks turned in a mixed performance on Wednesday as concerns about inflation and interest rates resurfaced following a jump in oil prices amid an escalation in tensions in the Middle East after joint attacks by Saudi Arabia and the United States in Iraq, targeting Iran-backed militias.
In addition to reacting to a spate of corporate earnings announcements, investors also looked ahead to the Federal Reserve’s monetary policy announcement.
US Central Command said in a post on X that Iran launched multiple ballistic missiles in an attempted surprise attack on US forces based in the Middle East on Tuesday.
In a subsequent statement, CENTCOM said US and Saudi Arabian forces conducted precision strikes in Iraq against Iran-aligned terrorists that the Islamic Revolutionary Guard Corps directed to attack US forces and Saudi energy infrastructure.
In response to the surprise attacks on US forces in Jordan, President Donald Trump told a Fox News reporter the US will be hitting Iran hard, adding, “They’re going to get a beating.”
The pan-European Stoxx 600 ended 0.29% down. Germany’s DAX closed flat and France’s CAC 40 settled lower by 0.6%, while the UK’s FTSE 100 moved up 0.34%. Switzerland’s SMI closed down by 0.58%.
Among other markets in Europe, Austria, Belgium, Finland, Ireland, Portugal, Spain, Sweden, and Turkey closed weak.
The Czech Republic, Denmark, Greece, Iceland, Norway, Poland, and Russia ended higher, while the Netherlands settled flat.
In the UK market, The Sage Group and Weir Group both jumped by about 8.75%. Burberry Group climbed 4.7%.
Reckitt Benckiser moved up 4.3% after delivering a strong second quarter and maintaining its annual forecast.
Standard Chartered gained nearly 3% after announcing higher quarterly profit and a $1 billion share buyback. In addition, the Board announced an interim ordinary dividend of 20.4 cents per share, up 66% from last year.
BP, Experian, Rentokil Initial, Glencore, Shell, Associated British Foods, Tesco, Croda International, Prudential, Metlen Energy & Metals, Rio Tinto, and British American Tobacco gained 1.5%-3.4%.
Aberdeen Group dropped 4.3%. Diploma, IMI, Halma, Fresnillo, Endeavour Mining, IAG, Rolls-Royce Holdings, Segro, Investec, Barclays, Airtel Africa, and Entain also declined sharply.
In the German market, Infineon fell nearly 6%. Vonovia, Commerzbank, Siemens Energy, Continental, Hochtief, and E.ON lost 1%-2%.
Rheinmetall moved up nearly 7%. Siemens Healthineers gained 4.5%. SAP, Volkswagen, Deutsche Boerse, Brenntag, Bayer, Beiersdorf, Zalando, BMW, and Porsche Automobil Holding gained 1%-2%.