European Equities Slip as German Growth Cuts

(MENAFN) European share markets ended Wednesday’s session in negative territory as market participants assessed a weaker outlook for Germany’s economy, ongoing disruptions in the Strait of Hormuz, and lingering ambiguity surrounding the US-Iran ceasefire agreement.

The pan-European STOXX 600 index decreased by 0.35%, shedding 2.15 points to close at 613.88. In Germany, the DAX retreated 0.31% to finish the midweek trading day at 24,194.9. The UK’s FTSE 100 also edged lower, declining 0.21% to 10,476.46. Elsewhere in Europe, France’s CAC 40 fell 0.96% to 8,156.43, Italy’s FTSE MIB eased 0.25% to 47,785.46, and Spain’s IBEX 35 dropped 0.75% to 18,006.4.

In currency markets, the euro weakened slightly against the US dollar, slipping 0.23% to 1.1717 as of 17:30 GMT.

Meanwhile, Germany significantly revised its economic projections downward, cutting its 2026 growth forecast to 0.5% from 1% and lowering its 2027 estimate to 0.9% from 1.3%. Authorities attributed the downgrade to heightened tensions in the Middle East and the effective closure of the Strait of Hormuz, both of which have driven up costs for consumers and businesses.

Berlin also adjusted its inflation expectations upward, forecasting consumer price growth of 2.7% this year and 2.8% next year, as rising energy prices and more expensive raw materials continue to filter through the broader economy.

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