The European stock market closed down. The latest corporate performance dragged down the performance of technology stocks and essential consumer goods stocks, while rising oil prices driven by the escalating tension between the US and Iran also put pressure on the benchmark stock index. The Stoxx Europe 600 Index closed down 1.2%. The food and beverage sector performed the worst, with Nestlé shares falling 8%. The company reported weak sales in the North American market, disappointing investors who were betting that CEO Philipp Navratil could drive business recovery. The ECB keeps borrowing costs unchanged and is awaiting more data to determine whether the price pressure caused by the Iran war requires further tightening of monetary policy. “The ECB is standing still today; probably the most appropriate understanding is to hang your foot on the brake pedal,” said Madison Faller, a global investment strategist at JPMorgan Private Bank. “Policymakers may need to see energy prices fall rapidly, and there is little sign that price pressure spreads to the wider economy. But as energy prices and inflationary pressures come back into focus, these conditions seem increasingly difficult to meet.”

The European stock market closed down. The latest corporate performance dragged down the performance of technology stocks and essential consumer goods stocks, while rising oil prices driven by the escalating tension between the US and Iran also put pressure on the benchmark stock index. The Stoxx Europe 600 Index closed down 1.2%. The food and beverage sector performed the worst, with Nestlé shares falling 8%. The company reported weak sales in the North American market, disappointing investors who were betting that CEO Philipp Navratil could drive business recovery. The ECB keeps borrowing costs unchanged and is awaiting more data to determine whether the price pressure caused by the Iran war requires further tightening of monetary policy. “The ECB is standing still today; probably the most appropriate understanding is to hang your foot on the brake pedal,” said Madison Faller, a global investment strategist at JPMorgan Private Bank. “Policymakers may need to see energy prices fall rapidly, and there is little sign that price pressure spreads to the wider economy. But as energy prices and inflationary pressures come back into focus, these conditions seem increasingly difficult to meet.”