European shares slip as war fears, central bank meetings loom

The pressure was especially clear in Britain and Germany, where the FTSE 100 fell 0.6% and the DAX lost 0.2%, extending both to a sixth straight losing session. Technology and consumer-staples shares were among the biggest drags, reflecting a market that has become more sensitive to geopolitics after crude climbed above $100 a barrel. Traders said the longer the conflict drags on, the more the energy hit and weaker growth outlook are being priced into European equities, even as U.S. stocks, helped by technology-led gains, held up better.

The move matters far beyond trading desks. Higher oil prices can quickly filter into petrol bills, heating costs and freight rates, leaving households with less room to spend and companies with less room to absorb costs. That is why investors are watching the European Central Bank meeting in Frankfurt on April 29-30 and the Bank of England’s April decision on April 30 so closely. Markets expect the ECB to leave rates unchanged, but policymakers are still expected to signal that further hikes remain possible if the energy shock keeps inflation sticky.

The weakness in sentiment was underscored in Germany, where consumer confidence is sliding as households face brighter inflation pressure and darker income expectations. The GfK and Nuremberg Institute for Market Decisions said the consumer-climate reading for April was minus 28.0, down from minus 24.8 in March, and expected conditions to worsen heading into May as the war in Iran keeps energy costs elevated.