DAX|SEMISThe DAX fell 2.23% to 24,897.45, its steepest single-day decline in recent weeks, led overwhelmingly by semiconductor exposure. Infineon Technologies was the worst performer in the Euro Stoxx 50, falling 8.26%, followed by ASML at -7.28%. Both stocks were under pressure from the US-Iran escalation, fears of further disruption to global supply chains, and the structural uncertainty created by the Apple-Broadcom US onshoring announcement. ASMI and STMicro also posted sharp declines across the session.
IBEX|BANKSThe IBEX 35 was the worst-performing major European index on Wednesday, closing down 2.73% to 19,104.30. Banco Santander fell 5.06%, its decline driven by the combination of rising European rate volatility, a hawkish FOMC tone reinforcing higher-for-longer concerns globally, and broader risk-off sentiment linked to the Middle East escalation. The European Banks sector index (EXV1) closed down 2.86%, the second-worst sector after Industrials.
FTSE|ENERGYThe FTSE 100 fell 1.66% to 10,489.0 despite the significant positive exposure of the UK index to energy producers. Brent crude surging 5.20% to approximately $78/bbl boosted upstream names, but the broader index was dragged lower by financials, mining, and industrial stocks. TTF gas rose 4.70% and UK NBP gas surged 5.40% to 116.7p/therm, reinforcing UK energy cost pressures that have kept headline inflation elevated.
CAC|FOOD&BEVThe CAC 40 fell 2.18% to 8,252.66. The Food & Beverage sector (EXV6) was the worst-performing European sector, closing down 4.52% — a sharp contrast to Wall Street, where Unilever rose 3.05% and L'Oréal gained 2.74% to top the Euro Stoxx 50 gainers list. SAP SE also gained 2.74%, bucking the broader tech selloff, while Fresenius Medical Care rose 2.67%, making healthcare names relative safe havens within an otherwise negative session.
EUR|GBP|FXEUR/USD fell 0.33% to 1.1404 and GBP/USD fell 0.37% to 1.3349 as the combination of hawkish FOMC minutes, surging oil prices, and IMF growth downgrades for the euro area weighed on European currencies against a broadly stable dollar (DXY -0.09% to 101.05). The Swiss franc strengthened with USD/CHF rising 0.46% to 0.8088, reflecting classic safe-haven flows. EUR/GBP was essentially flat at 0.8542, suggesting broadly symmetric pressure on both currencies relative to the dollar.
NATO|DEFENCEEuropean defence stocks were a notable exception to Wednesday's broad selloff following the conclusion of the NATO Ankara summit. The alliance's pledge of €70bn in Ukraine assistance and commitment to a 5%-of-GDP defence spending target by 2035 reinforced the multi-year fiscal impulse for the sector. Saab saw a specific catalyst as Secretary General Rutte confirmed NATO will procure up to 10 reconnaissance aircraft from the Swedish manufacturer. Rheinmetall, BAE Systems, and Thales remained in focus as structural beneficiaries of the accelerating NATO spending ramp, with average NATO Europe defence expenditure currently at 2.53% of GDP versus the new 5% target.