European Markets Stagnate as Rheinmetall Shares Collapse

The slide in Rheinmetall followed reports that Berlin is scrapping plans for its largest warship project since World War II, a decision that triggered a sharp sell-off in the aerospace and defense sector. While defense stocks faltered, the market found support elsewhere. Real estate shares climbed 2.4%, bolstered by investor enthusiasm for Segro following a public acquisition bid from Prologis. Meanwhile, the technology sector showed signs of life, clawing back value after a period of sustained pressure.

Oil markets remained largely unmoved, with crude holding steady at $76 a barrel. Traders are gauging the potential impact of a tentative U.S.-Iran peace agreement, which could normalize shipping routes through the Strait of Hormuz. Despite the potential for easing supply bottlenecks, the overall mood on trading floors remained cautious as capital rotated into property and tech assets.