01.09.202616:17:06UTC+00European Stocks Drop for 2nd Session

European stocks extended their losses on Tuesday, closing sharply lower for a second consecutive session as worries mounted that tight financial conditions could restrain economic activity. The Euro STOXX 50 slipped 0.9% to 6,365, while the STOXX Europe 600 declined 0.6% to 647.

Geopolitical tensions also weighed on sentiment. The United States and Iran carried out further strikes, prolonging uncertainty around energy shipments from the Persian Gulf and driving fuel prices higher, thereby intensifying inflation risks. The recent rise in energy prices has already pushed up headline inflation in the Eurozone, according to the latest data, reinforcing expectations that the ECB is likely to raise rates this month.

Among major movers, SAP, Prosus, and Adyen lost between 2.6% and 4%. Industrial names were also under pressure, with Siemens, Schneider Electric, and Rheinmetall each falling around 2.5%.

In contrast, Novartis jumped 6.3% after its experimental multiple sclerosis pill delivered positive results in two late-stage clinical trials.