Iran Talks and Tech Worries Shape European Stocks

Iran talks and tech worries shape European stocks as Spanish shares slide and traders await the ECB decision.

European stocks opened mixed on Thursday, with slight gains across most major indices while Spanish shares kept struggling. The Eurostoxx slipped 0.1%, Germany’s DAX gained 0.3%, France’s CAC 40 climbed 0.7%, and the UK’s FTSE 100 added 0.4%. Italy’s FTSE MIB fell 0.4%, while Spain’s IBEX dropped 1.0%.

The IBEX extended its losses after a 1.5% decline on Wednesday pushed it to a three-month low. Spanish banks have weighed heavily on the index in recent sessions. Santander tumbled 5.6% on Wednesday despite reporting a 19% rise in profits.

Lula’s victory in the Brazil election triggered fears of aggressive public spending and fiscal deterioration, which prompted investors to sell Spanish multinationals with exposure to the country. Santander, Telefónica, and Mapfre all came under pressure.

Iran Talks and Tech Worries Shape European Stocks

Investors also await the ECB policy decision later today, but a more worrying signal came from Wall Street. S&P 500 futures fell 0.4%, while Nasdaq futures slumped 1.2% after Alphabet’s earnings revived concerns over massive AI spending commitments. Alphabet’s sharp drop put tech stocks on edge, even though Microsoft’s results offered a more encouraging picture. Amazon still has to report.

For now, European stocks are holding up better than their US counterparts, though a deeper tech selloff could change that as the session progresses.

According to Semafor, the Trump administration is pursuing a temporary peace deal with Iran. Vice President JD Vance reportedly sent a letter to Tehran to revive negotiations, although Trump downplayed the initiative and framed it around humanitarian needs.

Meanwhile, an administration official told Semafor that US forces could resume combat operations shortly after the midterm elections, with the military reportedly needing only presidential authorization. Several officials remain skeptical about escalation, and Trump is reportedly the most open to military action, though he still has reservations.

The outcome carries clear implications for energy markets. A diplomatic breakthrough could ease geopolitical risk and oil prices, while renewed military escalation could reignite concerns over regional stability and energy supply disruptions.

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