Europe Markets Weekly — 2026-04-03
European markets endured a turbulent week, whipsawed between relief rallies on Middle East de-escalation hopes and sharp reversals as President Trump's shifting rhetoric on the Iran conflict kept investors on edge. The STOXX 600 closed out March with its worst monthly performance since mid-2022 — a decline of nearly 8% — before staging a strong multi-day bounce in early April that was ultimately pared on Thursday and Friday. Surging energy-driven inflation, the EU's emergency response to the energy price shock, and fresh uncertainty over the conflict's duration leave the outlook deeply uncertain heading into next week.



