FX.co ★ European Stocks Close Lower

European equities pared early losses but still finished lower on Monday, as the escalating conflict between Iran and the US kept investors on edge over the risk of tighter energy supplies from the Middle East. The Eurozone’s STOXX 50 slipped 0.4% to 5,904, while the broader pan-European STOXX index edged down 0.2% to 614.

Sentiment weakened after US President Trump said Washington would impose a blockade on the Strait of Hormuz, further heightening tensions following failed talks between Tehran and Washington.

Investors were also weighing political developments in Hungary, where Peter Magyar won the election and is poised to become the next prime minister, bringing an end to Prime Minister Orban’s 16-year, Eurosceptic rule.

Banking shares retreated as bond yields moved higher, with Societe Generale, Santander, and BNP Paribas each losing close to 1%. In the luxury sector, LVMH slipped 0.4% ahead of its first-quarter revenue release after the closing bell.