European stocks tick lower as mining losses weigh
Equities in Europe have been under pressure since the war began due to the inflationary impact of surging oil prices
Published Sat, Jun 20, 2026 · 07:41 AM
[BENGALURU] European shares inched lower on Friday (Jun 19) as mining stocks tracked a fall in metals prices and investors remained cautious after US-Iran negotiations to end the Middle East conflict stalled.
The pan-European Stoxx 600 index closed 0.2 per cent lower, still managing to eke out a 0.4 per cent weekly gain after hitting record highs earlier in the week. Risk sentiment remained shaky as US-Iran talks in Switzerland planned for Friday were cancelled as fighting flared in Lebanon, creating fresh uncertainty.
However, Israel and Hizbollah later agreed to a ceasefire in Lebanon. An uptick in oil prices on Friday sent travel and leisure stocks down 0.9 per cent, while energy stocks climbed 1.3 per cent. Mining stocks led losses as commodities prices eased, declining 2.1 per cent. London-listed miners Antofagasta and Pan African Resources were among the worst hit.
The pan-European Stoxx 600 had rallied to a record high earlier this week, driven by signs of progress in the US-Iran peace talks and a gradual reopening of the Strait of Hormuz, a vital artery for global energy supplies.
“The reopening is only partially reflected in EU equities rotations and breadth, as investors await deal execution,” Morgan Stanley analysts said in a note, while downgrading energy stocks to “equal weight” from “overweight”.
Equities in Europe have been under pressure since the war began due to the inflationary impact of surging oil prices, but sentiment is yet to recover fully due to the frailty of the peace negotiations.
Meanwhile, data showed German producer prices rose less than expected in May, up 2.2 per cent on the year, a relief for investors worried about high energy costs feeding inflation.
The European Central Bank last week raised interest rates for the first time in nearly three years, but policymakers expect a pause at their next meeting in July as the more likely scenario.
Chip-equipment maker ASML said thatit had never shipped an extreme ultraviolet lithography machine to China, after a report that US officials were concerned one of the company’s most advanced tools may have reached the country. Its shares ended 1.1 per cent lower.
Netherlands-based hotel group PPHE dropped 15.8 per cent after the company said a £920.9 million (S$1.6 billion) takeover proposal from Israel’s Fattal Hotel Group has fallen through. REUTERS
