Investors shift focus to potential easing of Middle East tensions, weighing on European equities in early trading.
European stocks opened lower as optimism over fresh U.S.-Iran negotiations dampened demand for safe-haven assets. The Stoxx Europe 600 index fell 0.3% in early trading, led by declines in energy and defense sectors, which are sensitive to geopolitical developments.
Markets had previously rallied on signs of de-escalation in the Middle East, but the prospect of diplomatic progress introduced volatility. Analysts noted that while reduced tensions could stabilize oil prices, near-term uncertainty persists amid mixed signals from both sides.
Brent crude futures slipped 0.4% to USD 82.10 a barrel, reflecting investor caution ahead of any concrete breakthroughs. Gold, another traditional safe haven, also retreated slightly, trading at USD 1,985 per ounce.