A stock trader looks at his monitors in the trading room of the Frankfurt Stock Exchange. Worries about a new coronavirus mutation in southern Africa have dealt a major blow to the German stock market.
Arne Dedert | Picture Alliance | Getty Images
LONDON — European stocks are expected to open in negative territory on Thursday as regional market sentiment remains downbeat and oil prices tick higher.
The U.K.’s FTSE 100 index is seen opening 0.7% lower, with Germany’s DAX down 1.3%, France’s CAC 40 down 0.77% and Italy’s FTSE MIB 0.9% lower, according to data from IG.
International benchmark Brent crude rose almost 1.3% to $103.19 per barrel by 1:19 a.m. ET on Thursday, following media reports that the U.S. has intercepted at least three Iranian oil tankers in Asian waters, heightening uncertainty that the Middle East conflict may drag on.
European bourses missed out on gains enjoyed by U.S. peers on Wednesday, closing lower as investors weighed an extension of the Iran war ceasefire with the continued blockage of the Strait of Hormuz.
Sentiment was also kept in check after Germany halved its economic growth forecasts for 2026, with officials saying they now expect Europe’s largest economy to grow just 0.5% this year. For 2027, the GDP forecast was trimmed from 1.3% to 0.9%.
Germany’s Economics Ministry cited the Iran war and closure of the Strait of Hormuz as reasons for the downgrades, and said the country had seen costs for households and businesses rise. Officials projected that inflation would rise to 2.7% this year and 2.8% next year.
Japan and South Korea stocks hit record highs overnight, before Asia-Pacific markets retreated into negative territory, following the reports of Iran tanker interceptions. S&P 500 futures were little changed Wednesday night.
It’s another busy day for earnings in Europe with Roche, Nestle, SAP, Sanofi, Vinci, LSEG, Orange, Nokia, Heineken, STMicroelectronics, Dassault Systemes and Renault among the companies reporting Thursday.
Data releases include flash services and manufacturing PMIs for the euro zone and U.K., and EU new car registrations.