European markets tumble as oil prices surge; ECB and BOE decisions ahead
European stocks opened sharply lower on Thursday as investors assess soaring oil prices and await more earnings and central bank moves.
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LONDON — European stocks opened sharply lower on Thursday as investors digest the latest reports on the Iran war and monitor a raft of corporate earnings and central bank decisions.
The pan-European Stoxx 600 was trading 0.5% lower shortly after 8:10 a.m. in London (3:10 a.m. E.T.).
The U.K.'s FTSE 100 index was seen hovering around the flatline at the market open, with Germany's DAX down 0.7%, as France's CAC 40 dropped 1% and Italy's FTSE MIB fell almost 1.2%.
Almost all regional sectors were in the red, with autos leading the losses, down 2.6%. Banks dopped 1.4% and financial services retreated to the tune of 1.1%. Oil and gas were the main exception, with stocks rising 0.8% on the back of Thursday's oil price surge, while telecoms were also marginally positive.
Brent crude hit a wartime high, past $126 a barrel, following a report that the U.S. military would brief President Donald Trump on potential action against Iran, raising fears that armed conflict could resume, and that the blockade of Iranian ports would continue.
Axios reported that the U.S. Central Command was set to present Trump plans for possible military action against Iran, citing two sources with knowledge of the matter.
June futures for international benchmark Brent crude rose 6.84% to $126.10 a barrel as of 12:22 a.m. ET Thursday, while U.S. West Texas Intermediate added 3.14% to $110.24.
Central bank action will be in focus later with the European Central Bank and Bank of England both poised to deliver their latest monetary policy decisions on Thursday.
Neither bank is expected to change interest rates but their forward guidance will be closely watched, given the ongoing war in Iran.
Data releases from Europe are also in focus, with the preliminary readings of euro zone GDP for the first quarter and April inflation set to be published at 10 a.m. London time.
It's another busy day for earnings with Schneider Electric, Unilever, BNP Paribas, Glencore, ING, DHL Group, Societe Generale, Credit Agricole, Volkswagen, Standard Chartered, BASF, Ferrovial, Erste Group Bank, ArcelorMittal, Danske Bank, Stellantis and Air France-KLM, among others, all reporting earnings.
— CNBC's Lee Ying Shan contributed to this market report.
