European stocks largely held steady on Wednesday, with investors eyeing rhetoric from the U.S. indicating a push to end its war with Iran soon.
Track European stocks with InvestingPro - now 50% off By 03:09 ET (07:09 GMT), the pan-European Stoxx 600 had ticked up by 0.1%, the Dax in Germany had edged higher by 0.2%, and the FTSE 100 in the United Kingdom had climbed by 0.2%.
Meanwhile, the CAC 40 in France fell by 0.6%, weighed down in part by a steep drop in shares of Birkin bag maker Hermes, which posted a slowdown in quarterly sales growth amid demand headwinds from the Iran conflict. Peer Kering’s stock price slumped as well, after sales at the Gucci-parent fell. The figures, coupled with similarly downbeat returns from Dior-owner LVMH, have dented hopes for a rebound in the European luxury sector.
However, sentiment was bolstered by chip equipment supplier ASML, Europe’s largest company by market cap. The Dutch group, whose customers include semiconductor titans like TSMC and Intel, lifted its annual sales outlook, underlining the boost it has received from the artificial intelligence boom. Chipmakers have scrambled to get their hands on ASML’s products, as companies rush to build up their AI capabilities.
Trump signals more U.S.-Iran talks ahead U.S. President Donald Trump has suggested that peace talks between Washington and Tehran could restart in the next two days, following a first round of negotiations in Pakistan last weekend.
Vice President JD Vance, who led the U.S. delegation in Islamabad, also signaled optimism around the state of the negotiations.
Yet the U.S. has continued to blockade Iranian ports, with American military officials saying that seaborne trade in and out of the country has been completely halted. Trump imposed the restrictions earlier this week after the Pakistan talks failed to yield an immediate permanent ceasefire deal, although experts had played down hopes that an agreement could be secured in such a short period of time.
The blockade threatened to add to concerns over oil supply flows through the Persian Gulf, which have slowed to a trickle during the war. But the Wall Street Journal has reported that over 20 commercial vessels have managed to pass through the Strait of Hormuz recently, signaling a possible improvement in movement through the vital waterway off of Iran’s southern coast.
Oil prices hovered below $100 a barrel, although they remain well above pre-war levels. At 03:16 ET, Brent crude futures, the global benchmark had moved up by 0.3% to $95.10 a barrel, while U.S. West Texas Intermediate crude futures had declined by 0.2% to $91.12 a barrel.
