FX.co ★ European Stocks Cut Gains

European stocks surrendered early gains and turned lower on Friday, with the EURO STOXX 50 slipping 0.4% and the STOXX Europe 600 down 0.3%, deepening their weekly losses as energy prices resumed their climb. The situation in the Middle East remains unresolved, with uncertainty over the conflict with Iran persisting as the war enters its seventh day. Fears that surging energy costs—particularly for crude oil and natural gas—could fuel a renewed inflation spiral are weighing on equity markets worldwide. Basic materials, healthcare, technology, and utilities led the declines. ASML Holding lost around 3%, while Roche fell 2.7% after mid-stage trial results for an experimental obesity drug developed with Zealand Pharma disappointed investors. Both indices remain sharply lower for the week, with the EURO STOXX 50 down 5.8% and the STOXX 600 off 4.6%, their steepest weekly drops since April of last year.