23.03.202608:32:07UTC+00European Stocks Slide Sharply at Start of Week

European equities fell on Monday, with both the STOXX 50 and STOXX 600 losing around 1.5%. The decline extends last week’s nearly 3.8% drop and pushes the indices back to levels last seen in September and November of the previous year, respectively.

Market sentiment remained fragile amid escalating tensions in the Middle East, which continued to support higher oil prices. President Trump issued a 48-hour ultimatum to Iran to “fully open” the Strait of Hormuz, while the Speaker of Iran’s Parliament warned that buyers of US government bonds could be treated as legitimate targets.

All sectors traded in negative territory, with financials and industrials among the hardest hit. Major blue chips also moved lower, including ASML Holding (-1%), HSBC Holdings (-0.8%), and LVMH (-0.4%).

Poste Italiane slid more than 5%, making it the worst performer on the STOXX 600, after announcing a €10.8 billion takeover bid for Telecom Italia. In contrast, Telecom Italia shares gained 5.4% on the news.