European shares were little changed on Thursday after strong gains in the previous session, as investors remained cautious amid ongoing U.S.-Iran peace talks, rising bond yields, and oil prices holding above $100 a barrel.
The pan-European STOXX 600 index was flat at 620.28 points after climbing 1.5% on Wednesday to near two-week highs. Germany’s DAX and France’s CAC 40 also traded largely unchanged.
Investor sentiment remained fragile as Iran reviewed Washington’s latest proposal to end the conflict, while U.S. President Donald Trump warned attacks could resume if no agreement is reached.
Economic data added to concerns after surveys showed France’s private sector contracted at its fastest pace in more than five years in May, while Germany’s private sector shrank for a second consecutive month.
Analysts said geopolitical uncertainty, high borrowing costs, and Europe’s dependence on oil imports continue to limit gains in regional markets despite optimism surrounding artificial intelligence-driven growth globally.
Bank shares fell 0.4%, while oil and mining stocks also declined. Meanwhile, markets increasingly expect the European Central Bank to raise interest rates again in June.
Among individual stocks, EasyJet rose 0.5% after reporting results in line with expectations despite warning of uncertainty linked to the Iran conflict. Generali gained 2.1% after strong quarterly earnings, while defence firm QinetiQ jumped 6.3% following a new share buyback announcement. Autotrader fell nearly 4% after reporting flat April revenue. ـــReuters
Qoute: European equities have been unable to bounce back to pre-war levels as the region's dependence on oil imports and small AI tech exposure has held it back, while global shares have rallied.
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