Europe opens in the red against the new geopolitical impasse

The main European stock exchanges opened in the red on Monday, with geopolitical impasse returning to the Middle East conflict following Washington’s rejection of Tehran’s peace proposal. In Paris, the CAC 40 lost 0.64% to 8,060.60 points by 07:46 GMT. In Frankfurt, the Dax fell by 0.19%, while in London, the FTSE 100 rose by 0.15%. The EuroStoxx 50 index lost 0.19%, the FTSEurofirst 300 decreased by 0.02%, and the Stoxx 600 was down by 0.04%.

Despite a calm weekend in the Middle East, the markets’ attempt to rebound is being hindered by the latest statements regarding peace negotiations in Iran, leading to a geopolitical deadlock. President Trump labeled Iran’s response to the US proposal as “totally unacceptable,” prolonging the conflict that started in late February.

Tehran rejected the latest American proposal, stating that accepting it would mean “submitting to Donald Trump’s excessive demands.” Market attention is now on President Trump’s upcoming visit to China, with investors hopeful that Beijing’s influence could lead to a resolution of the conflict and the reopening of the Strait of Hormuz.

In market movements, TKMS lost nearly 2% after an initial 3% gain, while the German shipbuilder reported a record order book. Compass Group raised its profit forecast for 2026 on Monday, boosting the share price of the world’s largest corporate catering service provider by 3%.

(Reporting by Coralie Lamarque, Editing by Augustin Turpin)