European stock markets decline amid semiconductor slump and rising oil prices

European equity markets experienced a broad decline, with major indices such as the CAC 40, DAX, and IBEX 35 trading lower. The Prague Stock Exchange's PX index fell by 0.32%, primarily driven by weakness in the financial sector, including Erste Bank, Moneta Money Bank, and Komerční banka. In Germany, the DAX closed in negative territory, while the STOXX 600 index also saw losses, particularly in consumer and financial segments.

A significant driver of the downturn was the semiconductor sector, with ASML and Infineon shares dropping approximately 6% amid uncertainty regarding AI development and data center spending.

In the commodities market, oil prices rose sharply due to geopolitical tensions in the Middle East, with Brent crude trading between $107 and $108 per barrel. This surge in energy costs is raising inflation concerns, potentially impacting central bank decisions. Meanwhile, gold failed to gain safe-haven status as a stronger dollar and rising bond yields reduced its attractiveness. Investors are now looking toward upcoming Federal Reserve decisions for further market direction.