European equities finished lower on Thursday as a sharp rise in energy prices pushed up benchmark yields. The Euro STOXX 50 slipped 0.4% to 6,275, while the STOXX Europe 600 declined 0.5% to 637. Crude and natural gas prices jumped amid growing signs that the naval blockade in the Persian Gulf may be prolonged, compounded by indications from the US administration that it could move to restrict diesel exports.
Sovereign bond yields continued their climb this week, putting pressure on corporate valuations. In the technology and industrial space, Infineon dropped 4.2% and Siemens Energy fell 1.7%, mirroring the weaker AI-related trade in North America. Banks also traded mostly lower, with UniCredit down 1.6% and Deutsche Bank off 2.3%.
In contrast, Dior surged 16% after the Arnault family group unveiled a cash offer of €469 per share. Outside the euro area, the Swiss National Bank left interest rates unchanged as expected and signaled resistance to further intervention in support of the franc, helping to stabilize Swiss financial stocks. By comparison, the Riksbank opted for a hawkish hold, while Norges Bank raised its policy rate.
