13.04.202607:29:25UTC+00European Stocks Lower as US-Iran Talks Stall

European equities started the week lower, with both the STOXX 50 and STOXX 600 falling by nearly 0.9%. Risk appetite deteriorated after hopes for a ceasefire with Iran diminished following unsuccessful talks between Tehran and Washington. Geopolitical tensions were further heightened by US President Trump’s announcement that the United States would impose a blockade on the Strait of Hormuz.

At the same time, markets were digesting significant political developments in Hungary, where Peter Magyar won the election and is poised to become the next prime minister, bringing Viktor Orbán’s 16-year rule to an end. Magyar has pledged to strengthen Hungary’s relationship with the European Union, a stance closely watched by investors.

Market participants are also shifting their focus to the start of the corporate earnings season, with major names including LVMH, BMW, Kering, ASML, and Hermès set to release their results this week. Selling pressure was broad-based across sectors, with all industry groups finishing in negative territory. Consumer cyclical names, along with technology, financials, and industrials, were among the worst performers.