Week in negative territory for the main European stock exchanges, while the conflict in the Middle East enters its fourth week, upsetting the energy markets. A scenario that fuels fears of rising inflation and the intervention of central banks on monetary policy.
The positions of the main central banks
The Federal Reserve has highlighted high risks linked to the general macroeconomic context: American central bankers still expect at least a quarter-point rate cut this year. The ECB has taken a more cautious tone on monetary policy amid higher inflation: futures markets are now pricing in two rate hikes in 2026. Meanwhile, the Bank of England has voted to keep rates unchanged, with some more dovish members highlighting risks to price stability from the conflict.
The rise of oil
Oil has returned to close to $120 a barrel, reflecting Iran’s new attacks on the oil infrastructure of neighboring Gulf countries, in particular Qatar and the United Arab Emirates. The bombings of the last few days have severely tested Doha’s exports of liquid natural gas (LNG), with repercussions that will be serious for the major importing countries in the EU as well as in Asia.
Gold and silver in free fall
Gold and silver suffered a violent sell-off this week, with drops of around 5% and 10% respectively, while global markets are overwhelmed by fears linked to the war in Iran and the return of inflationary pressures.
The correction also hit mining stocks and precious metals ETFs hard. The movement in metals reflects broader risk-off sentiment: Global stocks and bonds fell in parallel as investors monitor the evolution of the conflict between the United States and Iran, now entering its fourth week. The risk of an energy shock, fueled by recent attacks on infrastructure in Iran and Qatar, is reigniting inflationary fears.
The weekly performance of the stock markets
The worst performance of the week was recorded by the Frankfurt stock exchange which lost more than 5 percentage points. Paris also fell by around 4%, Milan down by 3.6% and London by 3.7%. Madrid falls by 2.6%. The ending is also expected to be negative for the Wall Street stock market.
The best and worst in Piazza Affari
On Piazza Affari, Inwit leads the declines with -17.9%, Technoprobe and De’ Longhi both down by 14%. Energy stocks, however, did well: Eni gained 8.5%, Tenaris 5.5% and Saipem 4%.
