European equities moved lower on Thursday after disappointing German industrial output figures and rising uncertainty over the stability of the Middle East ceasefire unsettled markets.
Data released by Destatis showed that German industrial production unexpectedly contracted in February, even before the conflict in the Middle East escalated.
Output declined by 0.3% compared with January, when production had remained unchanged. Economists had expected a 0.6% increase for the month.
Eurozone government bond yields edged higher as early signs of strain emerged in the fragile Gulf ceasefire. Israel has intensified its strikes in Lebanon, while Iran has closed the Strait of Hormuz.
Iran’s semi-official news agencies also published a graphic on Thursday suggesting that the country’s Revolutionary Guard Navy deployed sea mines in the Strait of Hormuz during the conflict.
“The U.S. must choose ceasefire or continued war via Israel. It cannot have both. The world sees the massacres in Lebanon. The ball is in the U.S. court, and the world is watching whether it will act on its commitments,” Iran Foreign Minister Araghchi said in a post on X.
U.S. President Donald Trump said American military forces will remain stationed in and around Iran until Tehran fully complies with the “real agreement.”
Market benchmarks across Europe traded lower. Germany’s DAX Index dropped 1.1%, France’s CAC 40 Index fell 0.6%, and the U.K.’s FTSE 100 Index declined 0.3%.
In corporate developments, Dutch pharmaceutical compounding group Fagron (EU:FAGR) shares declined despite the company reporting strong first-quarter revenue results.
British American Tobacco (LSE:BATS) also traded lower after announcing the appointment of Dragos Constantinescu as its new chief financial officer.
Meanwhile, shares of London Stock Exchange Group (LSE:LSEG) moved higher after the company unveiled a share buyback program worth up to £900 million.
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