European Stocks Fall as Macroeconomic, Geopolitical Tensions Weigh

FTSE Mib drops below 44,000 level amid broader market declines

Mar. 13, 2026 at 8:48am

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European stock markets opened in negative territory on Friday, hit by a mix of macroeconomic data and geopolitical tensions fueling uncertainty across financial markets. Germany's wholesale prices rose 1.2% year-on-year in February, while Iran's new supreme leader warned that the Strait of Hormuz will remain closed as a "pressure tool" against the U.S. Consequently, Italy's FTSE Mib fell 1.2% to 43,938.14 points, with other major indices like the FTSE 100, CAC 40, and DAX 40 also posting losses.

Why it matters

The combination of rising wholesale prices and geopolitical tensions, particularly around the Strait of Hormuz, is contributing to increased volatility in European financial markets. This is putting pressure on energy sectors and raising concerns about the broader economic outlook, as investors grapple with the potential impact of these factors on corporate earnings and consumer spending.

The details

Among individual stocks, Saipem gained 1.5% as it rebounded after three bearish sessions, while Leonardo rose 0.6% after JP Morgan raised its target price. Stellantis fell 1.5% as it considers possible agreements with Chinese automakers to reorganize its European operations. In the mid-cap segment, Avio jumped 7.1%, while Safilo Group and Caltagirone also posted gains. On the small-cap index, Tesmec shed 4.3% for its third consecutive bearish session.

  • Germany's wholesale prices rose 1.2% year-on-year in February.
  • Iran's new supreme leader issued a warning about the Strait of Hormuz on Friday.

The players

FTSE Mib

Italy's benchmark stock market index, which fell 1.2% to 43,938.14 points on Friday.

Saipem

An Italian oil and gas company that gained 1.5% as it rebounded after three bearish sessions.

Leonardo

An Italian aerospace, defense, and security company that rose 0.6% after JP Morgan raised its target price.

Stellantis

A multinational automotive manufacturing corporation that fell 1.5% as it considers possible agreements with Chinese automakers to reorganize its European operations.

Avio

An Italian aerospace company that jumped 7.1% on the mid-cap index.

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What they’re saying

“The Strait of Hormuz will remain closed as a "pressure tool" and threatening attacks on all U.S. bases in the region if they do not close.”

— Mojtaba Khamenei, Iran's new supreme leader (marketscreener.com)

The takeaway

The combination of rising wholesale prices and geopolitical tensions, particularly around the Strait of Hormuz, is contributing to increased volatility in European financial markets, putting pressure on energy sectors and raising concerns about the broader economic outlook.