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THE AUDIO BRIEF
THE RUNDOWN
European markets retreated this week as intensifying Middle East tensions and hawkish central bank signals weighed on sentiment.
The DAX 40 dropped 5.02%, hitting 11-month lows as industrial heavyweights like Siemens and energy-sensitive stocks like E.ON faced steep losses amid fears of a prolonged energy crisis.
France’s CAC 40 fell 3.41%, pressured by a significant rotation out of luxury and technology leaders, with Hermes and Safran leading the decline as investors braced for a more aggressive ECB rate path.
The Euro Stoxx 50 declined 4.14%, reflecting broad weakness across the Eurozone as rising oil prices and geopolitical uncertainty triggered a shift toward safe-haven assets.
Spain’s IBEX also felt the pressure, falling 2.20%.
RISERS
• TotalEnergies is a multi-energy company that rose 6.30% due to rising oil prices and strong performance in its integrated LNG and power segments.
• Eni is an Italian integrated energy firm that rose 4.79% following higher crude benchmarks and progress on its strategic plan to divest non-core assets.
• Sanofi is a global healthcare leader that rose 1.67% as investor confidence improved following positive clinical trial data and steady growth in its specialty care.
FALLERS
• Prosus is a global consumer internet group that fell 14.06% as increased artificial intelligence spending by its major holding, Tencent, negatively impacted investor sentiment.
• Hermès is a luxury goods manufacturer that dropped 11.87% due to broader economic uncertainties and a sector-wide downturn affecting aspirational and discretionary consumer demand.
• Safran is an aerospace and defense company that declined 8.18% amid persistent supply chain bottlenecks and a slowdown in airline ordering activity across Europe.
