Europe midday: Losses extend as investors fret over rate hikes

(Sharecast News) - European stocks extended losses on Thursday as renewed geopolitical tensions and a global tech sell‑off weighed on sentiment across the region.

The benchmark STOXX 600 was down 0.48%, with all major bourses lower as traders adopted a cautious stance amid fresh inflation concerns.

Markets were unsettled after overnight US strikes on Iranian targets prompted Tehran to warn it could restrict regional energy exports. The prospect of disruption in the Strait of Hormuz pushed Brent crude back above $85 a barrel.

The rise in oil prices continued to fuel worries about inflation-led rises in interest rates as investors bet on central banks keeping policy tighter for longer. Rate‑sensitive sectors, including consumer discretionary, real estate and industrials, were among the early fallers, while travel and leisure names also retreated on the prospect of rising fuel costs.

Sentiment was also hit by another sharp sell‑off in Asia, where semiconductor and AI‑linked stocks tumbled.

In equity news, shares in warehouse tech and online grocery firm Ocado slumped after half-year results.

Rotork surged by 66% after it agreed to be bought by Swiss engineering company ABB in a £4.1bn deal.

Reporting by Frank Prenesti for Sharecast.com