European shares traded with little conviction on Friday as investors pulled back from riskier positions after reports that planned U.S.-Iran negotiations would not go ahead. By 0711 GMT the pan-European STOXX 600 index was down 0.1%, as declines in mining and utility stocks offset gains in energy and defence sectors.
Market attention turned to the sudden cancellation of talks between U.S. and Iranian representatives, after Switzerland said the meetings would not take place on Friday and U.S. Vice President JD Vance abandoned plans to travel to the country. That development added uncertainty about the prospects for a durable truce, curbing the momentum that had driven stocks to record highs earlier in the week.
The earlier rally had been supported by signs of progress in the negotiations and by reports of a gradual reopening of the Strait of Hormuz, a key channel for global energy shipments. With those dynamics now in doubt, investors moved away from higher-beta positions, leaving the overall market largely flat.
On an individual company level, Entain was among the stronger performers, rising 1.7% after a Reuters report that the Ladbrokes-owner has begun reviewing options for its Central and Eastern Europe joint venture, including a potential sale.
Conversely, ASML fell 1.8% following a Bloomberg report that U.S. Commerce Secretary Howard Lutnick told the chip-equipment maker Washington is worried one of its premier machines may have been transferred to China in possible breach of U.S.-led export controls.
Market context
- STOXX 600: down 0.1% by 0711 GMT.
- Sector moves: miners and utilities lagged; energy and defence posted gains.
- Notable stock moves: Entain +1.7%, ASML -1.8%.
Implications for investors
Investors appear to have become more cautious after the cancellation of the planned U.S.-Iran talks, reversing some of the risk-on positioning that had propelled European equities earlier in the week.