Eurozone Markets Retreat Amid Middle East Tensions

Stoxx Europe 600 slipped 0.21 % to 657.86 points, closing the week’s trading day in decline—except for Germany.

Eurozone’s Mixed Signals: Declines with a German Outlier

■Stoxx Europe 600: down 0.21 % to 657.86

■FTSE 100: down 0.21 % at 10 750.11

■CAC 40: down 0.16 % to 8 636.8

■FTSE MIB: down 0.2 % to 53 583.61

■DAX 40: up 0.53 % to 26 440.31

Middle‑East Tensions Cast a Shadow

■U.S. Defense Secretary Pete Hegseth signals a potentially "everlasting" maritime blockade on Iran

■Iran claims to have downed an MQ‑9 Reaper UAV near the Strait of Hormuz

■Investor risk appetite wanes, hinting at short‑term volatility

Euro/Dollar Pair Gains Momentum

■EUR/USD: up 0.44 % at 1 158

■Euro strengthens against a weakening dollar at 18.19 TL

Regional Economic Outlook

■Eurozone GDP: 0.4 % growth in Q2 vs. Q1

■Employment: 0.1 % increase

Liquidity and Volume Dynamics

■Overall trading volume in European markets remained muted, except for the DAX’s upward momentum

Kerem Tufan: The observed market pullback reflects investors’ risk‑off posture amid Middle East uncertainties. The steady rise in the DAX suggests confidence in German consumer and investment fundamentals. The euro’s strengthening against the dollar, coupled with solid growth metrics, signals a potential medium‑term recovery for the region.