European shares fell on Wednesday after renewed tensions in the Middle East rattled investors. The pan-European STOXX 600 index was down 0.6% at 642.22 points. Energy price-sensitive sectors such as auto stocks dropped the most, down 1.6%, while banks slid 1.3%.
Shares of Air France and Wizz Air lost more than 2% each as crude prices climbed on renewed geopolitical tensions. Lufthansa slipped 4% after Citigroup downgraded the stock rating to “sell” from “neutral”.
Tensions between the U.S. and Iran were high after the two adversaries traded fire and Washington revoked a licence allowing Tehran to sell oil. This move is likely to threaten the tenuous ceasefire that has held between both parties.
Investors also kept a close watch on technology stocks, which have had a shaky start to July after a strong AI-driven rally in the previous quarter. European technology stocks traded in different directions, as chip equipment maker ASML rose 1%, while semiconductor stocks Soitec and Aixtron fell more than 1% each.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
