European stocks closed sharply lower on Tuesday, erasing part of the gains from the previous two sessions as investors scaled back optimism over progress in the US–Iran conflict. The Eurozone’s STOXX 50 fell 1% to 6,070, while the pan-European STOXX 600 declined 0.5% to 628.
Sentiment weakened after US forces struck Iranian targets shortly after President Trump had signaled advances in negotiations, a development that pushed energy prices higher and drove a rebound in European sovereign bond yields.
Banks surrendered a portion of Monday’s rally, with Santander, Deutsche Bank, and UniCredit shedding between 1% and 2.4%. In the technology sector, ASML dropped nearly 3%, leading regional tech losses despite a broadly strong session for AI infrastructure stocks worldwide.
Ferrari plunged more than 8% after unveiling its first fully electric vehicle.
