Overview
- The pan-European STOXX 600 futures opened about 1.1% lower on Tuesday as major national indices such as Germany’s DAX and France’s CAC 40 also moved down.
- Traders now price roughly 50 basis points of Federal Reserve hikes by year-end and an additional 25 basis points from the European Central Bank, according to CME FedWatch and LSEG data.
- The rout hit AI-linked megacaps and chipmakers after strong gains earlier this quarter, since higher short-term rates raise the cost of debt that many firms used to fund AI projects and lengthen the time needed to earn back those investments.
- Oil prices fell after reports of progress in U.S.-Iran talks and a U.S. 60-day sanctions waiver that eased near-term supply risk through the Strait of Hormuz, reducing one source of market pressure on inflation.
- Active corporate stories from EasyJet-Castlelake talks to UniCredit’s complex plans for Commerzbank and Heineken’s CEO change added company-level volatility that could amplify sector rotation and investor caution.