European stocks are set to open lower on Thursday, reflecting a negative market sentiment as oil prices rise. The U.K.’s FTSE 100 is projected to decline by 0.7%, with Germany’s DAX down 1.3%, France’s CAC 40 down 0.77%, and Italy’s FTSE MIB down 0.9%. The uptick in Brent crude oil prices, now at $103.19 per barrel, follows reports of U.S. interceptions of Iranian oil tankers, which has intensified concerns over the ongoing Middle East conflict.

This bearish sentiment is compounded by Germany’s revised economic growth forecasts, which were halved to just 0.5% for 2026, citing the Iran conflict and rising costs for households and businesses. The forecast for inflation has also been adjusted upward, indicating potential strain on consumer spending and corporate profitability in the region.

Market professionals should closely monitor the earnings reports from major companies like Roche and Nestle today, as these results could provide insights into sector resilience amid geopolitical tensions and economic headwinds.

Source: cnbc.com