Opening
European equities sold off broadly on Thursday, with the IBEX 35 leading declines at -1.91% to close at 19,073.4, marking the sharpest single-session drop among major regional benchmarks. The DAX shed 1.49% to 25,069.5, while the CAC 40 fell 1.21% to 7,770.2, leaving the FTSE 100's comparatively modest -0.74% decline to 10,463.7 as the relative outperformer. The euro weakened 0.71% against the dollar to 1.1183, compounding equity losses for European investors with dollar-denominated exposures and signalling broad risk-off sentiment across asset classes.
Brent crude rose 1.15% to $101.74, adding cost pressure to European energy-intensive industrials and airlines while providing a tailwind for oil majors such as Shell and TotalEnergies. Gold slipped 1.05% to $4,143.30, signalling a modest rotation away from haven assets that may support risk appetite in European equities.
Key stock move
UniCredit (BIT: UCG) led declines across European equities, falling 4.41% to €7.53, as renewed pressure on Italian financials dragged the FTSE MIB lower. Siemens shed 2.60% to €271.75 on the DAX, while ASML dropped 2.47% to €1,596.00 on the AEX, extending the recent selloff in European technology and semiconductor names.
Macro–Equity Bridge
Brent Crude +1.15% at $101.74 → Enel (ENEL.MI), Iberdrola (IBE.MC): higher energy input costs compress utility operating margins on unhedged generation capacity
EUR/USD −0.71% at 1.1183 → ASML (ASML.AS), Adyen (ADYEN.AS): dollar-invoiced revenues translate back at weaker euro, partially offsetting equity-price declines
IBEX 35 −1.91%, worst performer → UniCredit (UCG.MI), Siemens (SIE.DE): broad risk-off rotation hits high-beta financials and industrials hardest across eurozone bourses
Gold −1.05% at $4,143 → DAX −1.49%, CAC 40 −1.21%: safe-haven unwind signals risk sentiment deteriorating, not improving, as equities and gold fall in tandem
What to watch today
Brent crude holds above $101 a barrel, keeping energy stocks in focus and sustaining pressure on inflation expectations across the eurozone. The euro trades at $1.1183 against the dollar, a level that will weigh on exporters' earnings outlooks as currency headwinds persist for manufacturers with significant dollar-denominated revenues. Investors will monitor any fresh commentary from ECB officials for signals on how the combination of elevated oil prices and a firmer euro shapes the path of future rate decisions.