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European shares seen lower at open as hopes of end to Middle East conflict fade
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European shares seen lower at open as hopes of end to Middle East conflict fade
Apr 2, 2026 12:12 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

April 2 (Reuters) - Futures tracking Europe's main stock

indexes fell more than 1% on Thursday as hopes of a quick end to

the Middle East conflict faded after U.S. President Donald Trump

vowed more strikes on Iran.

Futures tracking the pan-European STOXX 600 index .

slid nearly 2% by 0636 GMT, with contracts tracking Germany's

DAX and France's CAC 40 index down 1.7% and

1.6%, respectively.

Market sentiment weakened after Trump said "we're going to

hit them extremely hard over the next two to three weeks. We're

going to bring them back to the Stone Ages where they belong."

Brent crude wizzed past $100 a barrel, up nearly 7%.

Oil linked stocks and cyclicals such as industrials and banks

will be in focus when market opens.

The STOXX 600 jumped over 2% on Wednesday after Trump stated

that Washington would wind up its hostilities with Iran

imminently, reflecting the volatility investors have had to

navigate for over a month.

A prolonged delay to reopening of the Strait of Hormuz, a

strategic waterway for major European imports, will continue to

pressure equities and reinforce already heightened inflation and

growth fears.

Interest rate futures are pricing in at least two interest

rate hikes of 25 basis points each by the end of this year,

according to LSEG-compiled data. Markets had been pricing in no

change to monetary policy by the European Central Bank before

the war.

Among individual movers, Novo Nordisk's shares

will be eyed after U.S.- based rival Eli Lilly's ( LLY )

weight-loss pill got approval by the U.S.-Food and Drug

Administration.

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