European Markets Muted as Middle East Tensions Weigh on Sentiment

While basic resources nudged 0.6% higher on the back of bullion’s rally, the broader market struggled to find momentum. Technology stocks bore the brunt of the session's volatility, sliding 0.4% as a persistent bond sell-off pushed yields upward, pressuring growth-oriented valuations. Semiconductor firms faced particular strain, with Soitec, Nordic Semiconductor, and Scout24 all recording notable losses despite positive revenue signals emerging elsewhere in the tech sector.

Macroeconomic pressures further complicated the outlook. In the United Kingdom, inflation unexpectedly accelerated in July, complicating the local central bank's path forward. Simultaneously, diplomatic friction intensified in the Strait of Hormuz, where Donald Trump publicly contradicted Iranian claims regarding the status of the vital shipping lane, asserting that the passage remains open for transit.