EUROPEAN STOCKS END FOUR-WEEK WINNING STREAK ON TECH SELLOFF AND IRAN WAR RISK

European shares ended a four-week winning streak after a technology selloff and renewed U.S.-Iran fighting weighed on investor sentiment, according to Reuters. The pan-European STOXX 600 fell 1.8% for the week, reversing a recent run of gains as markets absorbed both valuation concerns in the technology sector and rising geopolitical risk.

Reuters reported that European technology shares fell for the week, with Soitec and ASML among the companies hit by the selloff. The move reflected continued investor concern that some technology and artificial-intelligence-linked stocks had climbed too far, too quickly, prompting a rotation away from parts of the sector.

The market pressure was not limited to technology. Reuters reported that renewed fighting between the United States and Iran added to risk aversion, while Washington's reimposition of sanctions on Iranian oil helped push Brent crude futures up 5% for the week. Higher oil prices can support energy shares, but they also raise inflation and growth concerns for import-dependent economies.

Geopolitical uncertainty also followed investors through the NATO summit in Turkey, according to Reuters. Markets were watching both the Middle East conflict and U.S. President Donald Trump's comments on Spain before he later moderated his stance, adding another layer of political uncertainty to the week's trading.

Some individual stocks still posted sharp gains. Reuters reported that Vodafone rose 12.6% after UAE telecoms group e& sold a stake, while easyJet jumped 14.3% after a takeover proposal from Apollo Global. Those company-specific moves helped offset some of the broader weakness but were not enough to keep the STOXX 600's weekly winning streak alive.

Steel shares also gained after J.P. Morgan upgrades, Reuters reported. ArcelorMittal, Voestalpine and Salzgitter each rose more than 6%, showing that the week's trading was defined less by a broad exit from Europe and more by a rotation between sectors.

On the downside, St. James's Place led losses, falling 8.5% after reports that a major partner may exit, according to Reuters. Volkswagen also declined as investors weighed internal disputes over restructuring and an 8.6% drop in global second-quarter vehicle deliveries.

The week leaves European markets facing three immediate tests: whether the technology selloff continues, whether oil prices keep rising because of the U.S.-Iran conflict, and whether earnings season can support valuations after a strong recent rally.

For now, the end of the STOXX 600's four-week winning streak points to a market that is still functioning, but more exposed to geopolitical shocks and sector-specific reversals than it appeared during the preceding rally.

Fact-check date: 11 July 2026
Article type: News
Sources: Reuters