European Stocks Slip Except Britain: Index Declines Amid Geopolitical Tensions

European equity indices closed in the red across all major markets except the United Kingdom.

Dark Clouds: Chip Sell‑Offs and Middle‑East Risk

■Chip manufacturers face continued selling pressure, reigniting debates over tech sector valuations.

■The United States' intensified strikes on Iran and Iran's retaliatory attacks on neighboring states are dampening global risk appetite.

■Investors remain uncertain about the trillion‑dollar AI spend’s payback timeline.

Index Snapshot: Losses and Gains

■Stoxx Europe 600 fell 0.5% to 640.7 points.

■DAX 40 slipped 0.5% to 24,746 points.

■FTSE MIB 30 dropped 0.7% to 52,009 points.

■CAC 40 declined 0.6% to 8,330 points.

■IBEX 35 eased 0.1% to 19,231 points.

Britain’s Lone Bright Spot: FTSE 100 Edges Higher

■FTSE 100 stayed 0.1% above the previous close at 10,587 points, marking the sole positive move in Europe.

IMF Outlook for the United Kingdom: Growth Slowing

■The IMF projects the UK’s growth, which was 1.3% in 2025, to fall to 1% in 2026.

■Forecasts for 2027 and 2028 are 1.3% and 1.7% respectively.

■The ongoing war in the Middle East is weakening near‑term growth expectations.

Data Watch: Euro‑Zone Inflation and Market Direction

■Analysts flag that June inflation figures will steer market sentiment, influencing the European Central Bank’s policy trajectory.

Expert Analysis (Hakan Çelik): The broad‑based decline in European equities reflects a confluence of heightened geopolitical risk and lingering concerns over tech overvaluation. Emerging markets like Turkey may experience similar risk‑off flows, pressuring local currencies and capital markets. The IMF’s revised UK growth outlook underscores the lingering impact of energy shocks on global growth. For Turkey, reinforcing macro‑policy resilience—particularly in energy strategy and external debt management—is imperative to mitigate exposure to such external shocks.