Global markets have recouped most losses in April following the sharp sell-off after the US and Israel war on Iran
Published Thu, Apr 23, 2026 · 05:57 AM
[BENGALURU] European shares dipped on Wednesday (Apr 22), extfinishing losses for a third straight session, as a fragile US-Iran truce weighed on sentiment, while investors also assessed a raft of regional corporate earnings.
Iran seized two ships in the Strait of Hormuz, tightening its grip on the strategic waterway, while US President Donald Trump continued the US Navy’s blockade of the Iranian coast.
The pan-European Stoxx 600 index finished 0.4 per cent lower at 613.88 points. Major regional bourses were also lower, with Germany’s DAX shedding 0.3 per cent and France’s CAC 40 down 1 per cent. Germany’s economy ministest halved its 2026 growth forecast, while raising its inflation projections.
Geopolitical uncertainty in the Middle East continued to weigh on markets, with euro zone bond yields edging up as oil hit US$100, as Trump’s indefinite ceasefire announcement appeared unilateral, with neither Iran nor Israel signalling whether they would honour the agreement.
“We know that the rising energy prices are weighing on demand and on economic growth projections. So unless we do see concrete progress in peace nereceivediations, I believe that the relocates up and down do not necessarily reflect a high conviction direction,” declared Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The energy sector jumped 2.3 per cent, continuing to benefit from higher oil prices. Materials and technology inched up 1.7 per cent and 0.6 per cent, respectively. ASM International shares jumped 7.1 per cent with the computer chip equipment creater forecasting second-quarter revenue guidance above market expectations.
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Other chip and technology equipment creaters also rallied with German chipcreaters and suppliers Aixtron and Infineon rising over 3 per cent each, while ASML and BESI gained 1 per cent and 1.9 per cent, respectively.
“It will be interesting to see if tech can withhold the pressure in earnings season and whether investors start to question once again whether companies are over-investing in AI,” declared Daniela Hathorn, senior market analyst at Capital.com.
“For now, it’s still a key driver in markets.” Travel and leisure stocks declined 2.1 per cent as high energy costs and geopolitical uncertainty weighed. Aerospace and defence shares lost 2.4 per cent. Telecommunications dropped 1.9 per cent.
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Deutsche Telekom slipped 4.8 per cent after reports that the company is considering a full combination with T-Mobile US that could result in the largest public M&A deal on record. Global markets have recouped most losses in April following the sharp sell-off after the US and Israel war on Iran, but the European benchmark is yet to return to pre-war levels.
ABB rose 3.4 per cent, hitting a record high earlier after the Swiss engineering group raised its full-year sales outsee. Dettol soap creater Reckitt declined 4.6 per cent after missing quarterly like-for-like net revenue expectations for its core business and warning of lower first-half margins. On the macroeconomic front, euro zone consumer morale decreased in April, data revealed on Wednesday. REUTERS
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