European stock markets are negative, except for the UK, due to the selling pressure in technology stocks and the escalating geopolitical tension in the Middle East.
Concerns about whether huge investments in the field of artificial intelligence will be rewarded, ongoing selling pressure on the shares of chip manufacturing companies and increasing geopolitical risks cause the perception of risk to continue in global markets.
While it remains unclear when trillions of dollars of spending will yield profits, whether technology stocks are overvalued or not continues to be a matter of debate in the markets. The USA’s intensification of its attacks against Iran and Iran’s continued attacks on other countries in the region in retaliation negatively affect the risk appetite in global markets.
With these developments, as of 10.20 in the European markets, the Stoxx Europe 600 indicator index is at 640.7 points, with a 0.5 percent decrease, and the FTSE 100 index in the UK is at 10,587 points, 0.1 percent above the previous closing.
In Germany, the DAX 40 index is at 24,746 points, 0.5 percent below the previous close, in Italy, the FTSE MIB 30 index is at 52,009 points, with a 0.7 percent decrease, in France, the CAC 40 index is at 8,330 points, with a 0.6 percent decrease in value, and in Spain, the IBEX 35 index is at 19,231 points, with a 0.1 percent decrease.
On the other hand, the International Monetary Fund (IMF) reported that growth in the United Kingdom, which was 1.3 percent last year, is expected to decrease to 1 percent in 2026, and that growth is expected to recover gradually as the effect of the energy shock passes.
In the statement made by the fund, it was stated that the UK economy remained resilient, but the war in the Middle East weakened near-term growth expectations. In the statement, it was reported that the UK economy is expected to grow 1.3 percent in 2027 and 1.7 percent in 2028.
Political developments are also in the focus of investors. In England, Andy Burnham is preparing to become prime minister on Monday. Analysts stated that the critical issue in England is who will become the Ministry of Treasury and Finance.
Analysts stated that the agenda of inflation data for June in the Eurozone will be followed for the rest of the day, and noted that the signals to be received from this data are expected to have an impact on the direction of the markets.
