European equities ease as investors await Middle East peace updates

EUROPEAN shares dipped on Thursday, as investors remained cautious while awaiting further developments in US-Iran peace talks.

Iran said it was reviewing Washington’s latest response to end the war, while US President Donald Trump said he was prepared to wait to “get the right answers” from Tehran, but attacks would renew if no deal was reached.

The pan-European Stoxx 600 was down 0.2 per cent at 618.79 points, as of 0701 GMT, after ending up 1.5 per cent higher on Wednesday near two-week highs.

European equities have been unable to bounce back to pre-war levels as the region’s dependence on oil imports and small AI tech exposure has held it back, while global shares have rallied.

Sources told Reuters that the case for a European Central Bank rate hike in June was nearly sealed, but the bank is likely to be noncommittal about a further move.

Money markets currently price in more than two rate hikes from the ECB before year-end.

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Among early movers, EasyJet dropped 1.8 per cent after the British budget airline posted a first-half loss, and said its full-year outlook remains uncertain amid the Iran war. REUTERS