A stock trader looks at his monitor in the trading room of the Frankfurt Stock Exchange. Concerns about the new coronavirus mutation in southern Africa have dealt a major blow to the German stock market.
Arne Dedert | Picture Alliance | getty images
LONDON – European shares are expected to open in negative territory on Thursday as regional market sentiment remains weak and oil prices remain elevated.
of britain FTSE 100 The index is seen opening down 0.7% with Germany dex Down 1.3%, France’s cac 40 Down 0.77% and Italy’s FTSE MIB According to IG data, 0.9% less.
International benchmark Brent crude rose about 1.3% to $103.19 a barrel by 1:19 a.m. ET on Thursday after media reports that the US has intercepted at least three Iranian oil tankers in Asian waters, raising uncertainty over whether the Middle East conflict could be prolonged.
European stock markets missed gains from U.S. peers and closed lower on Wednesday as investors worried about an extension of the Iran war ceasefire amid the ongoing blockage in the Strait of Hormuz.
Sentiment was also kept in check after Germany halved its economic growth forecast for 2026, with officials saying they now expect Europe’s largest economy to grow just 0.5% this year. The GDP forecast for 2027 was reduced from 1.3% to 0.9%.
Germany’s economics ministry cited the Iran war and the closure of the Strait of Hormuz as reasons for the downgrade and said the country had seen rising costs for homes and businesses. Officials estimated that inflation would rise to 2.7% this year and 2.8% next year.
Shares in Japan and South Korea hit record highs overnight, before Asia-Pacific markets slipped back into negative territory, following reports of the Iran tanker interception. S&P 500 futures were little changed Wednesday night.
It’s another busy day for earnings in Europe Roche, to shelter, SAP, sanofi, Vinci, LSEG, orange, Nokia, heineken, STMicroelectronics, Dassault Systemes And Renault Among the companies reporting Thursday.
The data release includes flash services and manufacturing PMIs for the euro zone and the UK and EU new car registrations.
