European stock markets lost momentum on Thursday, with all major benchmark indices closing lower as investor optimism waned due to economic and geopolitical uncertainties. The defence-led rally faded, and German stocks bore the brunt of the downturn, with the DAX sliding 1.24%, led by sharp selloffs in industrial and automotive shares. Optimism over Germany’s fiscal reform also faded after EU leaders failed to present a concrete strategy to support Ukraine.
The pan-European Stoxx 600 Index declined by 0.43%, while France’s CAC 40 fell 0.95% and Spain’s IBEX 35 dropped 0.76%.
