Latest news with #MandatumAssetManagement
Business Recorder
4 hours ago
- Business
- Business Recorder
European shares slide to near one-month low on Israel-Iran tensions
European equities tumbled to a near one-month low on Tuesday as the escalating conflict between Iran and Israel entered its fifth day. With geopolitical tremors rattling the region, risk appetite took a hit, leaving the pan-European STOXX 600 index down 0.8% at 542.26 points. Monday's respite from the selloff proved short-lived as the index snapped back into the red after breaking a five-session losing streak. Markets are on edge as Iran and Israel's aerial confrontation, sparked by Israel's Friday strike on Iranian nuclear facilities, threatens to turn the oil-rich Middle East into a flashpoint. While no supply disruptions have surfaced yet, the mere spectre of conflict has markets on high alert. Oil prices ticked higher, boosting the energy sector to a near three-month high. It was the only sector, along with real estate, in the green. 'The bigger question is what will happen on the Strait (of Hormuz) and if there is a closure, it will have implications for oil prices,' said Jukka Jarvela, head of listed equities at Finland's Mandatum Asset Management. Meanwhile, investors are also bracing for the U.S. Federal Reserve's policy verdict on Wednesday. Policymakers are widely tipped to hold rates steady. European shares snap five-day losing streak 'The (Fed) meeting will not be uneventful. We anticipate the growth forecast for this year to be revised slightly downward,' said Paolo Zanghieri, senior economist at Generali Investments. Meanwhile, a surprise uptick in German investor morale for June did little to buoy the DAX, which slid 1.1%. A downbeat mood was mirrored across most major sectors on the STOXX 600, with heavyweight banks leading the charge lower, down 2.3%. Middle East tensions add another layer of concern for investors already grappling with Trump's tariff policies and their impact on global economic growth, as a 90-day pause on a wide array of tariffs is set to end on July 8. Yet, amid the uncertainty, Europe has quietly benefited from a rotation out of U.S. assets this year, a trend Mandatum's Jarvela expects to persist as structural and policy shifts play out across the bloc. On the trade front, European Commission President Ursula von der Leyen was still aiming to reach a deal by July 9. German Chancellor Friedrich Merz expects to reach a deal before summer's end. UniCredit's CEO vowed to gradually reduce the stake his bank has built in Italy's top insurer Generali, ruling out large insurance deals for the group. UniCredit lost 3.6%, while Generali slipped 1.2%. Ashtead rose 4.1% after the construction equipment rental company forecast annual rental revenue growth of between flat and 4%.
Free Malaysia Today
10 hours ago
- Business
- Free Malaysia Today
European shares slide as Israel-Iran conflict keeps markets on edge
Most major sectors in the STOXX 600 were in red, with heavyweight banks down 1.6%, leading declines. (EPA Images pic) FRANKFURT : European shares tumbled today as the conflict between Iran and Israel entered its fifth day, raising the risk of further regional unrest and prompting investors to shun risk assets. The pan-European STOXX 600 index was down 0.7% at 543.26 points by 8.57am. It snapped a five-session losing streak yesterday. US President Donald Trump urged Iranians to evacuate Tehran and departed early from the Group of Seven summit in Canada, but clarified that it had 'nothing to do' with working on a ceasefire. Markets were concerned that the heightened tensions between the long-standing rivals could spill over into the oil-rich Middle East, though no disruptions have been reported yet. Oil prices ticked higher, helping boost energy shares by 1%. 'The bigger question is what will happen on the Strait (of Hormuz) and if there is a closure, it will have implications for oil prices,' said Jukka Jarvela, head of listed equities at Finland's Mandatum Asset Management. 'If they (oil prices) stay at the high level, it will accelerate the inflation again, which would be negative for the equities,' Jarvela said. Most major sectors in the STOXX 600 were in red, with heavyweight banks down 1.6%, leading declines. The bourses in Germany and Spain declined 1.1% and 1.5%, respectively. The Middle East tensions add another cause of worry for investors, who were already grappling with Trump's tariff policy and its impact on global economic growth. However, the European market has benefited from a rotation out of US assets this year. Jarvela sees the trend continuing in the long-term given structural and policy changes in the bloc. Amadeus shares fell 3.7%, among the biggest losers on the index, after Goldman Sachs sold shares of the Spanish travel technology company. Ireland sold its remaining shares in AIB Group sending its shares down 2.2%. Legal and General was down 1.3% after the insurer forecast 2025 core operating earnings per share in line with its three-year targets. On the day, the Swedish central bank's monetary policy decision will be watched. Focus this week also remains on interest rate decisions in the UK and the US.
