European Markets Hold Ground Amid Stalled Middle East Talks

Switzerland confirmed that high-level talks between the U.S. and Iran would not proceed as planned, following Vice President JD Vance's decision to cancel his trip. This uncertainty pushed investors toward defensive sectors. Healthcare giants Novo Nordisk and AstraZeneca saw gains, while the broader oil and energy sector climbed 1.2% as crude prices ticked upward. Morgan Stanley analysts noted that market breadth remains constrained, prompting a downgrade of energy stocks to "equal weight."

Economic data offered a silver lining, with German producer prices rising 2.2% in May—a softer increase than anticipated that eased concerns over inflation. Meanwhile, corporate maneuvering continued: Entain rose 1.6% on reports it is exploring a potential sale of its joint venture in Central and Eastern Europe. Conversely, ASML shares dipped 1.5% following reports that U.S. Commerce Secretary Howard Lutnick raised concerns over the potential diversion of chipmaking technology to China in breach of export controls.