Market Overview
As trading commenced on Thursday, March 5, 2026, European markets displayed a negative trend. The CAC 40 index in Paris fell by 0.66%, settling at 8,113.52 points by 08:26 GMT. In Frankfurt, the DAX index decreased by 0.57%, while London's FTSE 100 saw a decline of 0.30%.
The EuroStoxx 50 index dropped by 0.67%, with the FTSEurofirst 300 and Stoxx 600 indices also experiencing losses of 0.47% and 0.45%, respectively.
Geopolitical Tensions Impacting Markets
The ongoing military campaign involving the United States and Israel against Iran has escalated, with Tehran facing a new wave of Israeli airstrikes on Thursday morning. This marks the sixth day of military operations, during which Iran has retaliated with missile strikes targeting Israel and separatist groups in northern Iraq.
These geopolitical tensions have notably influenced oil prices, which surged by approximately 3% on Thursday following a brief respite the previous day. The ongoing conflict continues to disrupt the production and transportation of hydrocarbons.
Bond Market Reactions
The bond market is also feeling the effects of these developments, with yields in the eurozone rising as investors express concerns over a potential resurgence of inflation that could alter monetary policy direction.
Sector Performance
In terms of individual stocks, Italian payment services provider Nexi saw a significant drop of over 13% following the release of its annual results. This decline adversely affected French payment service provider Worldline, which became the worst performer in the SBF 120 index with a nearly 5% decrease.
The travel and airline sector was also hit hard by the situation in the Middle East, experiencing a decline of 1.76%, making it one of the most affected sectors in the Stoxx 600 at the market's opening.
Positive News for Campari
In contrast, Campari reported a 2.4% increase in organic revenue for the previous year, leading to a 7% rise in its stock price despite the challenging environment faced by the Italian spirits company.
