European equities moved lower on Wednesday, adding to the previous session’s losses as renewed conflict in the Middle East heightened inflation concerns and clouded expectations for central bank interest rate policy.
Oil prices and government bond yields jumped after U.S. President Donald Trump declared the Iran ceasefire “is over” during the NATO summit.
Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait, hours after the U.S. launched a wave of military strikes on Iran.
Market participants are also awaiting the release of the minutes from the first Federal Reserve meeting chaired by Kevi Warsh, hoping for further clues about the central bank’s future interest rate path.
The U.K.’s FTSE 100 Index was down 0.9%, while France’s CAC 40 Index and Germany’s DAX Index each dropped 1.7%.
IG Group Holdings (LSE:IGTG) declined sharply after the online trading company unveiled plans to create a new Jersey-based holding company.
Vistry (LSE:VTY) also fell heavily after the housebuilder warned of a first-half loss and revealed plans to streamline its operations.
Student accommodation specialist Unite Group (LSE:UTG) retreated after stating that annual rental growth is now expected to come in slightly below previous guidance.
Property developer Hammerson (LSE:HMSO) also lost ground after announcing the disposal of £69 million of non-core assets.
Kering (EU:KER) weakened after revealing that its Italian luxury brand Gucci had signed a 50-year exclusive beauty licensing agreement with French cosmetics group L’Oreal Co (EU:OR). L’Oreal shares were down 1 percent.
Meanwhile, energy majors BP Plc (LSE:BP.) and Shell (LSE:SHEL) advanced strongly as Brent crude climbed above $76 per barrel for the first time in two weeks amid fears of prolonged supply disruptions.
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