Traders work on the floor of the New York Stock Exchange during morning trading on April 13, 2026 in New York City.
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LONDON — European stocks ended Wednesday lower as traders assessed the trajectory of the U.S.-Iran war and the prospect of renewed peace talks.
The pan-European Stoxx 600 index finished the session more than 0.4% lower, with most major bourses and sectors in negative territory.
European luxury brands pulled the French stock market into negative territory following a raft of disappointing earnings.
Kering plummeted to the bottom of the Stoxx 600 index movers, its shares ending the day 9.3% lower, as sales of its largest brand, Gucci, fell below expectations.
The company, which also owns brands Yves Saint Laurent, Bottega Veneta and Balenciaga, also said retail revenue in the Middle East declined by 11% in the first quarter, following growth over the first two months of the year.
Hermes shares tumbled 8.2% as currency fluctuations weighed on the firm’s sales figures.
The retailer reported that currency fluctuations represented a “significant negative impact” on revenues of around €290 million ($295 million). LVMH and Christian Dior were also down as the news rippled across the sector.
The moves follow more positive sentiment in Asia-Pacific markets, with oil prices falling amid rising hopes of a diplomatic solution to the Middle East conflict. In the U.S., the S&P 500 advanced towards a new all-time intraday high, rising 0.4%, while the Nasdaq added 1.1%. The Dow Jones Industrial Average was last seen almost 0.5% lower, however.
A White House official told CNBC on Tuesday that a second round of negotiations between Washington and Tehran was under discussion. Nothing has been officially scheduled yet, the official said, who asked not to be named to discuss the administration’s internal plans.
President Donald Trump later told the New York Post that fresh U.S.-Iran talks in Islamabad “could be happening over next two days.”
Earnings came from ASML, Hermes International and Antofagasta on Wednesday.
— CNBC’s Kevin Breuninger contributed to this market report.
