<div id="readability-page-1"><div><p>[BENGALURU] European shares slipped on Thursday (May 7) after a steep rally in the previous session, as investors assessed progress towards a US-Iran peace deal that pushed crude prices sharply lower.</p><p>The pan-European Stoxx 600 ended 1.1 per cent lower after rising more than 2 per cent on Wednesday. Most regional bourses, including in France, Germany and Britain, also fell.</p><p>European energy stocks dropped 2.5 per cent as crude fell below US$100 a barrel. Shell lost 2.9 per cent despite beating first-quarter profit estimates and raising its dividend by 5 per cent.</p><p>Oil prices came under pressure as the US and Iran edged towards a temporary agreement to halt their war, sources and officials said. Teheran is reviewing a proposal that would stop the fighting but leave the most contentious issues unresolved.</p><p>European equities have lagged global peers since the conflict began, with elevated energy costs from supply disruption following the closure of the Strait of Hormuz fuelling inflation fears and clouding growth prospects.</p><p>“There are still no clear signs that a durable peace agreement is imminent, and the path to resolution – if and when it materialises – is unlikely to be linear in our view,” said Tom Nelson, head of market strategy at Franklin Templeton Investment Solutions.</p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>“Markets are forward-looking, but in this case, they may be looking through a level of uncertainty that remains materially unresolved”.</p><p>On the earnings front, spirits group Campari tumbled 14.5 per cent after first-quarter revenue missed expectations. Peers Diageo and Pernod Ricard fell more than 2 per cent each, while the beverages index dropped 2.1 per cent.</p><p>Defence stocks shed 2.7 per cent, with Rheinmetall down 6.9 per cent after the German group reported first-quarter results and said that it had submitted a bid to buy German Naval Yards Kiel.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="600" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/9f3afd31990cb7e51ab763977930f04c639e9633d949634d08afa201cb4b91d2/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="900" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/9f3afd31990cb7e51ab763977930f04c639e9633d949634d08afa201cb4b91d2/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>European shares pause as markets watch Middle East peace prospects; earnings on tap</span></h3><p></p></div></div></div></div></div></div><p>Shares of Siemens Healthineers fell 4.7 per cent after the medical technology company cut its full-year outlook, citing structural changes in the Chinese market and higher inflation expectations.</p><p>Conversely, Persil maker Henkel rose 3.3 per cent after meeting first-quarter sales expectations.</p><p>On the macro front, eurozone financial integration has made steady progress in recent years but equity markets remain fragmented, the European Central Bank said in a report. REUTERS</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>European shares fell on May 7, with the pan-European Stoxx 600 down 1.1% after a previous rally, as investors evaluated a potential US-Iran peace deal that pressured crude prices below $100 a barrel. Energy stocks dropped 2.5%, and Shell lost 2.9% despite strong earnings. Campari's shares plummeted 14.5% after missing revenue expectations, while Siemens Healthineers fell 4.7% due to a lowered outlook. The European Central Bank noted progress in eurozone financial integration, but equity markets remain fragmented amid ongoing geopolitical uncertainties.</p>

European shares pull back as Middle East peace prospects assessed