Europe's STOXX 600 hits two-week low on Mideast escalation, AI jitters
Europe's STOXX 600 hits two-week low on Mideast escalation, AI jitters
ReutersMon, June 8, 2026 at 7:39 AM UTC
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1 / 0German share price index DAX graph is pictured at the stock exchange in FrankfurtThe German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 5, 2026. REUTERS/staff
June 8 (Reuters) - Europe's STOXX 600 share index slid to a two-week low on Monday, weighed by escalating tensions in the Middle East and a global selloff in AI stocks, while Italian lender Monte dei Paschi di Siena jumped after a takeover bid from rival Intesa Sanpaolo.
The pan-European STOXX 600 index fell 0.9% to 616.04 points by 0812 GMT, with all major regional indexes also in the red.
Prices of crude oil, a key resource for energy-deficient Europe jumped more than 4% after Israel and Iran traded fire through the weekend, jeopardizing a fragile ceasefire in the region and clouding any hopes for an imminent end to the conflict.
Losses were broad, with energy price-sensitive airlines such as Lufthansa and Air France down over 2% each.
Tech stocks were among top declines, down 2.1%, tracking sharp sectoral losses in the U.S. late last week and also in Asia on Monday.
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Infineon slipped 1.7% and BE Semiconductor lost 3.8%. AI equipment makers Legrand and Schneider Electric fell about 2% each.
European tech shares have rallied this quarter, with the sector logging its the biggest quarterly gains among STOXX 600 sectors so far.
A stronger-than-expected U.S. jobs report has given the Federal Reserve more room to keep interest rates unchanged, with investors also contemplating a December rate hike.
Investors' focus is now on the rate decision by the European Central Bank, due on Thursday, with markets already pricing in 25-basis-point interest rate hike.
In M&A news, Italian bank Monte dei Paschi di Siena (MPS) gained 9.5% after Intesa Sanpaolo, Italy's biggest banking group, announced a €30.6 billion ($35 billion) unsolicited cash-and-share bid to buy the rival lender. Intesa slipped 3.2%.
(Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Janane Venkatraman)
Source: “AOL Money”
