Source: Sharecast
The pan-European Stoxx 600 fell 1.16%% to 597.83, extending a volatile week for global markets.
Germany’s DAX dropped 1.18% to 23,535.79, France’s CAC 40 lost 0.93% to 7,971.18, and London’s FTSE 100 declined 1.24% to 10,284.75.
“It has been another tough day for global equity markets,” said Chris Beauchamp, chief market analyst at IG.
“The rush for the exits that began on Monday has accelerated over the last 48 hours, on the realisation that there is unlikely to be a quick end to the war in the Middle East.”
Energy markets remained a central concern.
Oil prices climbed beyond $87 a barrel while natural gas surged to €52 per kilowatt hour on the Dutch TTF hub amid uncertainty over how Washington would resolve a growing supply bottleneck in the Strait of Hormuz, where more than 200 tankers and cargo vessels were reported to be unable to transit the strategic waterway.
“Hormuz is still closed and will remain so, while oil and gas infrastructure attacks continue sporadically,” Beauchamp said.
“While the US and Israel have aerial dominance, this war will come down to a test of willpower between Trump and Tehran.
“Gas prices [are] already higher for US drivers, and Iran is betting it can force Washington’s hand.”
In response to the tightening supply situation, the United States effectively reversed course on Russian oil restrictions by granting Indian refiners a 30-day waiver allowing purchases from Moscow, a move aimed at easing the global supply crunch.
The decision marked a sharp turnaround after Washington earlier imposed sanctions and a 50% tariff on Indian exports over continued imports of Russian crude.
Only last month president Donald Trump had said India agreed to halt those purchases in an effort to cut funding to Russia’s war effort in Ukraine.
Neil Wilson, investor strategist at Saxo UK, said markets were increasingly focused on the energy shock rather than macroeconomic indicators.
“But the focus remains squarely on the Middle East as economic data takes a back seat.
“Markets are again trading the headlines and the outlook for energy flows looks increasingly bleak and this could deteriorate quickly over the weekend, which supports de-risking flows this afternoon.”
US jobs data disappoints, eurozone economy grows modestly
Economic data also weighed on sentiment.
In the United States, the Bureau of Labor Statistics reported that the economy shed 92,000 jobs in February, the largest decline in four months and well below expectations for a gain of 59,000.
Healthcare led the drop with a loss of 28,000 jobs amid strike activity, while employment also declined in information, the federal government, transportation and warehousing, and manufacturing.
The unemployment rate rose to 4.4% from 4.3% in January, and labour force participation slipped to 62% from 62.1%.
Revisions further weakened the outlook, with payrolls for December and January revised down by a combined 69,000 positions.
Beauchamp said the labour market figures compounded existing concerns for investors.
“Stock markets, already reeling from the higher oil price, were hit by today’s payrolls that revealed a quadruple blow of bad news that signals the US economy continues to weaken.
“Having added no jobs since last April, the rationale for a Fed rate cut is there, but now inflation is back to effectively stymie policymakers.”
In Europe, official data showed the eurozone economy grew modestly at the end of 2025.
According to Eurostat, gross domestic product rose 0.2% quarter-on-quarter in the fourth quarter, slowing from 0.3% in the third quarter and missing expectations for a 0.3% increase.
Annual growth in the currency bloc was 1.2%, while GDP across the wider European Union expanded 1.4% year-on-year.
Germany’s economy grew 0.3% in the quarter after stagnating previously, Spain expanded by 0.8%, and France recorded growth of 0.2%, down from 0.5% in the previous quarter.
Employment in both the eurozone and the EU rose 0.2% in the fourth quarter, while full-year employment growth reached 0.7% and 0.5% respectively.
In the UK, housing data showed prices continued to edge higher.
Halifax reported that house prices rose 0.3% in February after a 0.8% increase in January, bringing the average property value to about £301,151.
Prices were up 1.3% year-on-year, the strongest annual increase in four months.
Halifax’s head of mortgages Amanda Bryden said the market had maintained momentum early in the year despite stretched affordability and constrained supply, although rising geopolitical tensions and surging energy costs could lead markets to anticipate a slower pace of interest rate cuts.
Retail data meanwhile painted a weaker picture of consumer activity in the UK.
The BRC-Sensormatic footfall monitor showed total UK footfall fell 4.7% in February, compared with a 0.6% decline in January, as heavy rainfall kept shoppers away from retail destinations.
Footfall dropped 5.4% on high streets and 5.5% in shopping centres, while retail parks saw a 3.1% decline.
Analysts said unusually wet weather, rising food prices and increasing unemployment pressures weighed on discretionary spending, though retailers were hoping warmer spring conditions and seasonal events such as Mother’s Day will help revive activity.
Zealand Pharma plunges, Sectra in the green
In equities, Denmark’s Zealand Pharma plunged 36.38% after disappointing mid-stage trial results for an obesity drug candidate being developed with Roche.
German airline Deutsche Lufthansa slipped 0.05%, reversing earlier gains after releasing annual results.
On the upside, Sweden’s Sectra jumped 13.98% after the medical imaging IT and cybersecurity group reported third-quarter sales above expectations.
German defence company Renk rose 4.02%, partly recovering losses from the previous session, while ITV gained 7.32% following reports that the British broadcaster remains in talks with Comcast subsidiary Sky about a potential sale of its television business.
Reporting by Josh White for Sharecast.com.
