Stoxx 600 Drops 1.2% as Trump Says U.S.-Iran Ceasefire Is on Life Support

10 articles · Updated · CNBC · May 12

The pan-European Stoxx 600 fell 1.2% shortly after the open, with every major sector and bourse in negative territory as hopes for a quick end to the U.S.-Iran war faded.
Trump said the month-old ceasefire was "on life support" and "unbelievably weak" after Tehran sent an "unacceptable" counter to Washington's proposal, pushing oil prices higher.
U.K. assets added to the pressure: the 10-year gilt yield rose nearly 10 basis points to 5.099%, sterling fell 0.5% against the dollar, and bank shares led FTSE 100 losses.
More than 70 Labour lawmakers have called on Prime Minister Keir Starmer to resign or set a timetable after heavy local-election losses, deepening a political crisis weighing on British markets.
Investors were also looking ahead to U.S. April CPI, with economists expecting 3.7% annual inflation, while Siemens Energy, Munich Re and Imperial Brands were due to report.

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