European Midday Briefing: Shares Fall as Tech Selloff Rages On

MARKET WRAPS

Stocks:

European shares were tumbling on Tuesday amid renewed worries over technology companies' rapidly rising spending on AI.

Artificial intelligence-linked stocks plummeted in Japan and South Korea, before European tech names fell sharply at market open.

Crude futures were also falling on mixed signals from talks between the U.S. and Iran on ending the conflict.

The U.S. waived longstanding sanctions on Iranian oil after Vice President JD Vance said Tehran had agreed to allow nuclear inspectors to return as early as this week.

"The move should facilitate the export of some of the estimated 30 million barrels that left Iranian ports last week," Saxo Bank said.

Iran said it has no plans to let inspectors visit nuclear sites, according to media reports.

London's miners opened lower as commodity prices dropped, with companies focused on precious metals amongst the largest fallers.

In the U.K., investors for now show limited concern about political uncertainty after Prime Minister Keir Starmer resigned on Monday, though public finances remain a concern.

Stocks to watch

Brenntag

raised its full-year guidance and reported second-quarter adjusted earnings above expectations, but the market might look through its short-term strength, Deutsche Bank said.

GSK's

proposed acquisition of Nuvalent could be a rare case of an oncology deal by a big pharmaceutical company at an excellent price that turns out to be profitable, Bernstein said.

L'Oreal

is likely to book slower sales growth in the latter half of the year, Deutsche Bank warned, cutting its rating on the French beauty giant's stock to sell from hold.

U.S. Markets:

Stock futures were down after both the Nasdaq and S&P closed in the red on Monday.

"The market is becoming more selective: fewer energy-shock fears, but more concern about rates, tech positioning and policy uncertainty," Tickmill Group said.

Forex:

The euro declined

after a key measure of German manufacturing and services activity fell further into contractionary territory in June.

The dollar rose to a fresh one-year high

against a basket of currencies, lifted by safe-haven flows and expectations for U.S. interest-rate rises.

Sterling edged lower

after volatile trading Monday following U.K. Prime Minister Keir Starmer's decision to resign.

Bonds:

The 10-year Bund yield slightly extended its fall

after the flash estimate composite purchasing manager index dropped to 48.0 for June, down from 48.8 in May.

Treasury yields fell in early trade with the two-year yield also retreating from the 16-month high it reached Monday

Yields on U.K. government bonds decline as falling oil prices calm fears about inflation risk.

Energy:

In early trading, Brent crude was down 1.7%, while WTI futures slid 1.6% on signs of progress in talks between the U.S. and Iran.

Metals:

Gold fell below $4,200 a troy ounce, pressured by a stronger dollar as investors weigh U.S.-Iran peace talks and the U.S. monetary policy outlook.

EMEA HEADLINES

Tesla Notches Over Twofold Increase in European Monthly Sales

Tesla logged a more than twofold jump in European monthly sales in May as Elon Musk's electric-vehicle maker continues to rebuild strength in a region where Chinese rivals are gaining ground.

New-car registrations for Tesla models, a reflection of sales, more than doubled on year last month to 28,610 units across the European Union, the U.K., Iceland, Liechtenstein, Norway and Switzerland, according to the European Automobile Manufacturers' Association, an industry body also known as ACEA. In the EU alone, Tesla sold 21,767 vehicles, also more than double from a year earlier.

Brewer Heineken Taps Peet's Executive to Fill Vacant CEO Seat

Heineken named Rafael Oliveira as its next chief executive officer, ending a period of uncertainty at the top of the world's second-largest brewer with the appointment of the head of Peet's Coffee owner JDE Peet's.

Oliveira is set to take the reins at Heineken from Oct. 1 for a period of four years, the company said in a statement Tuesday. The appointment brings to a close months of speculation after Heineken said at the start of the year that company veteran Dolf Van den Brink would be stepping down after six years at the helm of the Amsterdam-listed brewer.

Businesses In Europe, Asia See Costs Cooling On Peace Hopes

Businesses in Europe and parts of Asia reported that a surge in costs triggered by the onset of the conflict in the Middle East cooled in June following a tentative peace agreement, with some also seeing a rebound in activity, surveys published Tuesday indicated.

The strength of the recovery in activity will likely depend on how quickly energy supplies through the Strait of Hormuz return to prewar levels, while manufacturing output may remain subdued as businesses draw on inventories accumulated when the duration of the conflict and its impact on prices were more uncertain.

Sanofi Multiple Sclerosis Drug Gets EU Approval

Sanofi said it received European Union approval for a new multiple sclerosis medicine, months after the company's application was turned down by U.S. drug regulators.

The French drugmaker said Tuesday that the MS drug, Cenrifki, was approved by the European Commission-the bloc's executive arm-for the treatment of secondary progressive multiple sclerosis without relapses, a stage of the disease at which patients' disability steadily worsens.

GLOBAL NEWS

Oil Prices Choppy Amid Mixed Signals From U.S.-Iran Peace Talks

Oil prices were choppy in Asia on Tuesday, amid mixed signals from talks between the U.S. and Iran on ending the conflict, while regional tech stocks were hammered by concerns over heavy spending in artificial intelligence infrastructure.

Vice President JD Vance said Monday that Iran had agreed to allow nuclear inspectors to return to the Middle Eastern country as early as this week. However, Tehran didn't acknowledge the Trump administration's move to give inspectors broader access to its sites.

Businesses In Europe, Asia See Costs Cooling On Peace Hopes

Businesses in Europe and parts of Asia reported that a surge in costs triggered by the onset of the conflict in the Middle East cooled in June following a tentative peace agreement, with some also seeing a rebound in activity, surveys published Tuesday indicated.

The strength of the recovery in activity will likely depend on how quickly energy supplies through the Strait of Hormuz return to prewar levels, while manufacturing output may remain subdued as businesses draw on inventories accumulated when the duration of the conflict and its impact on prices were more uncertain.

U.S. Allows Iran to Sell Oil in Dollars for First Time in Decades

ZURICH-The U.S. cleared the way for Iran to sell oil in dollars, including to U.S. buyers, a reversal that came as Vice President JD Vance said Tehran had agreed to allow nuclear inspectors to return as early as this week.

The Treasury Department on Monday waived longstanding sanctions on those sales for two months while talks to reopen the Strait of Hormuz and address the issues of Iran's nuclear program and further sanctions relief proceed. For years, Iran used a shadowy network of tankers under sanctions to sell its crude, primarily to China.

U.S. Allows Iran to Sell Oil in Dollars for First Time in Decades

ZURICH-The U.S. cleared the way for Iran to sell oil in dollars, including to U.S. buyers, a reversal that came as Vice President JD Vance said Tehran had agreed to allow nuclear inspectors to return as early as this week.

The Treasury Department on Monday waived longstanding sanctions on those sales for two months while talks to reopen the Strait of Hormuz and address the issues of Iran's nuclear program and further sanctions relief proceed. For years, Iran used a shadowy network of tankers under sanctions to sell its crude, primarily to China.

The Forces That Broke the Two-Party System in the U.K.

LONDON-Nigel Farage has never held a position in the British government. As leader of the anti-immigration party Reform UK, he oversees just eight lawmakers in Parliament. Among voters, he has one of the lowest favorability ratings of any politician.

Yet when his upstart party, in May local elections, handed the ruling Labour Party its worst drubbing in the postwar period, it turned Prime Minister Keir Starmer's own party against him.

China's Latest Tool to Control a Disputed Atoll: a Strange Floating Platform

At first, the images were grainy: A speck appeared on satellite pictures at an uninhabited atoll sitting in a highly contested waterway that China claims as its own.

The speck was at Scarborough Shoal, a much-contested reef in the South China Sea, a maritime thoroughfare for about a quarter of the world's seaborne trade. Those early images raised concerns among the U.S. and its allies that China-which has controlled access to the shoal since 2012 and claims much of the surrounding area-could be setting the stage for a more permanent occupation.

How Latin America Became More Trump-Aligned Than Ever

The election of Abelardo de la Espriella as Colombia's president marks another step in Latin America's transformation into a region more deeply aligned with the political style and policy priorities of President Trump.

From the Andes to Central America, new leaders are taking power with populist mandates centered on free-market economic policies and iron-fisted security strategies.

Write to priscila.barrera@wsj.com

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June 23, 2026 05:17 ET (09:17 GMT)

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