Europe close: Stocks mixed as oil prices remain below $100

15th Apr 2026 15:36

(Sharecast News) - European equities were mixed on Wednesday as investors traded cautiously amid escalating geopolitical tensions in the Middle East, while oil prices rose on reports of additional US troop deployments to the region.

As Chris Beauchamp, chief market analyst at IG, noted, "After the surge in risk appetite last week investors continue to take a positive view of the situation.

"After weeks of seeing strikes across the Middle East, the absence of further significant conflict remains a cause for celebration, especially since both sides appear willing to continue negotiating."

The pan-European Stoxx 600 fell 0.38% to 617.60.

Germany's DAX edged 0.18% higher to 24,087.42 and France's CAC 40 gained 0.57% to 8,280.09, while London's FTSE 100 declined 0.47% to 10,559.58.

Patrick Munnelly, market strategy partner at TickMill, noted that "London equities were little changed on Wednesday, with weakness in financials and energy offsetting strength in healthcare, as investors stayed cautious amid continued uncertainty around the Middle East."

Oil prices moved higher, with Brent crude futures last up 0.98% on ICE at $95.72 per barrel, and the NYMEX quote for West Texas Intermediate ahead 1.58% at $92.72, as traders reacted to reports that the US was sending "thousands" more troops to the Middle East.

According to the Washington Post, more than 10,000 additional personnel were expected to arrive this month, including around 6,000 aboard the aircraft carrier USS George HW Bush and a further 4,200 later in April, adding to the roughly 50,000 US troops already stationed in the region.

"Everything still hinges on oil of course," Beauchamp said.

"The price continues to drift lower, providing equities with a crumb of comfort.

"But with more US troops en route to the Middle East it is not wise to rule out the possibility of more military action."

The deployments were reportedly intended to increase pressure on Iran ahead of the ceasefire expiry on 22 April, although US officials had also floated the possibility of further strikes or ground operations if the truce collapsed.

Brent, which was near $70 before the conflict escalated in late February, previously surged as high as $119 during the crisis.

European natural gas futures were also lower.

US president Donald Trump signalled optimism about negotiations, telling ABC: "I think you're going to be watching an amazing two days ahead," adding that "a deal is preferable because then they can rebuild."

He later told Fox Business: "I think it's close to over ... I think they want to make a deal very badly."

Vice president JD Vance echoed this view, suggesting the current ceasefire may not need to be extended, while Iran's foreign ministry spokesperson Esmail Baghaei confirmed talks were ongoing "under very difficult conditions" through Pakistani mediators, with no agreement yet reached.

Both sides continued to issue threats, with Tehran warning it could disrupt trade routes in the Red Sea and Gulf if US pressure persists.

Euro area industrial production rebounds

On the macroeconomic front, eurozone industrial production rebounded by 0.4% in February, ahead of expectations for a 0.3% increase, following declines of 0.8% in January and 0.6% in December.

Output remained 0.6% lower year-on-year.

Gains were driven by a 1.0% rise in capital goods, a 0.5% increase in intermediate goods and a 2.6% jump in non-durable consumer goods, offset by a 2.1% fall in energy production and a 1.3% decline in durable consumer goods.

Among member states, Ireland and Finland recorded the strongest monthly growth, up 5.7% and 3.3% respectively, while Malta, Luxembourg and Greece posted the sharpest declines.

Germany and France both saw renewed weakness, with German output slipping 0.1% and French production falling 0.8%.

In the US, mortgage applications rose 1.8% in the week to 10 April, marking the first increase in five weeks, according to the Mortgage Bankers Association.

Refinancing applications climbed 5.1% while purchase applications fell 1%.

The average 30-year fixed mortgage rate declined for a second consecutive week to 6.42%, its lowest level in around a month.

MBA economist Joel Kan said purchase activity remained subdued amid ongoing economic uncertainty despite the recent drop in borrowing costs.

Luxury stocks under pressure, Stellantis in the green

In equity markets, luxury stocks came under pressure as wealthy Middle Eastern consumers scaled back European travel due to the conflict.

Hermes International fell 7.74% after flagging weaker sales in the Middle East and Europe, while Kering dropped 9.43% as Gucci sales declined 8% in the first quarter, marking an 11th consecutive quarterly fall.

Compagnie Financiere Richemont and Burberry Group also declined, down 2.17% and 2.24% respectively.

"The personal goods sector was the weakest part of the market, pressured by a fall in Burberry after disappointing updates from Kering and Hermès weighed on sentiment," Munnelly added.

On the upside, Stellantis rose 1.78% after the automaker reported a 12% year-on-year increase in global shipments for the first quarter, reaching an estimated 1.4 million vehicles.

Reporting by Josh White for Sharecast.com.