FX.co ★ European Stocks Attempt to Rebound

European stocks attempted a rebound on Wednesday, with the STOXX 50 up 0.7% and the STOXX 600 advancing 0.6%, after sharp declines of nearly 6% and 5%, respectively, over the previous two sessions had pushed both benchmarks to their lowest levels in roughly two months. Investors seized on a brief respite while continuing to track developments in the conflict involving Iran, as energy prices stayed elevated even though the recent surge in oil and gas showed signs of easing.

Technology, utilities, and consumer non-cyclical shares led the recovery. ASML Holding gained 1.5%, L’Oréal rose 1.2%, and SAP added 1.6%. By contrast, Spanish stocks lagged, pressured by financials after US President Trump threatened to suspend trade with Spain in response to Madrid’s decision to bar US use of its military bases for operations linked to Iran. CaixaBank slipped 1.8%, Bankinter fell 1.9%, and Banco Santander declined 0.8%. Elsewhere, Adidas slumped about 7% following weaker-than-expected results.