Solid Gold Berjangka – European stock markets are poised for a decline at the opening of trading on Tuesday (November 3, 2026), following escalating geopolitical tensions between the United States and Iran. STOXX 600 index futures have fallen by more than 1%, while Germany’s DAX and Spain’s IBEX indices are both down by approximately 1%. This pressure follows reports of a U.S. military strike against Iran, which has reignited investor concerns regarding the ongoing conflict in the Middle East and its potential impact on the global economy.
Tensions intensified after a U.S. official revealed that Washington had launched an attack on Iran’s Qeshm Island, located in the strategic Strait of Hormuz. The strike occurred just one day after the Iranian government expressed openness to peace negotiations, while President Donald Trump signaled that Washington might hold off on further attacks until after the U.S. midterm elections. These developments have cast doubt on the likelihood of reaching a peace agreement in the near term.
The heightened geopolitical risk has also driven a recovery in global oil prices, following a sharp decline in the previous session. Brent crude rose 1.6%, climbing back above US$100 per barrel after having previously plummeted by about 7%. Rising oil prices threaten to renew inflationary pressure and increase operational costs for companies, particularly within the transportation sector. European airlines are under scrutiny, with Lufthansa announcing a downward revision to its profit forecast, citing mounting challenges to its business performance.
Beyond geopolitical factors, European stock markets are also facing pressure from growing concerns regarding the outlook for the artificial intelligence (AI) industry. Shares in technology companies such as Aixtron, ASML, and Schneider Electric may face declines, following a broader sell-off of tech stocks across Asian markets. Investors are increasingly questioning whether the massive capital expenditure required for AI is justified by the potential returns. Negative sentiment has intensified following Apple’s forecast of pressure on profit margins due to rising memory chip costs. Against this backdrop, Bayer is expected to trend positively after raising its profit projections through 2026.