European shares edge lower as US-Iran talks stall; central bank meetings in focus

Published Tue, Apr 28, 2026 · 05:45 AM

EUROPEAN shares started the week on a subdued note as investors braced for a packed schedule of central bank meetings, and worries over stalled US-Iran peace talks pushed up crude prices, curbing risk-appetite.

With technology-led moves aiding US stocks to all-time highs, energy-dependent Europe has lagged with several companies flagging the impact of the Iran war on earnings.

“Every week it (war) drags on, every week it makes it worse for Europe … So markets are certainly pricing that in, and that’s why we’ve seen US stocks outperform their European rivals”, Kathleen Brooks, research director at XTB, said.

The pan-European Stoxx 600 closed 0.3 per cent lower at 608.84 points. The index snapped a four-week streak of gains last week, ending 2.5 per cent lower.

Major regional bourses mirrored losses with Britain’s FTSE 100 declining 0.6 per cent and Germany’s DAX falling 0.2 per cent. Both indexes posted their sixth straight session in the red.

“It is a possibility that we continue to see the (Stoxx) 600 index diverge negatively from the technology-heavy US names in the coming days due to the weakening economic outlook in Europe,” Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said.

“The economic implications of the higher energy prices and the lower growth expectations globally, I think, will be a bigger drive for the European stocks than they will be across the Atlantic Ocean.”

Technology and consumer staples shares were the biggest drags on the European Stoxx 600, down 1.3 per cent and 0.5 per cent, respectively, on Monday.

Britain’s Intertek dropped 2.2 per cent after the product-testing firm rejected a revised takeover bid of £54 per share from Swedish private equity group EQT AB on Friday.

The oil and gas index reversed earlier gains and edged 1.1 per cent lower.

With oil prices pinned at above US$100 a barrel, markets will pay close attention to policy meetings at the European Central Bank and the Bank of England this week for any signs they could hike rates to curb price pressures.

German consumer sentiment was at a three-year low, weighed by higher energy prices and rising inflation, a survey showed.

Among other movers, Nordex shares advanced 5.7 per cent after the German onshore wind turbine maker posted core earnings and sales above expectations.

Adidas added 1.1 per cent after Kenya’s Sabastian Sawe became the first person to run a marathon in under two hours in an official race, while wearing the brand’s trainers. REUTERS