By Johann M Cherian and Utkarsh Hathi
June 4 (Reuters) – European shares were steady on Thursday, as investors assessed whether developments in the Middle East would lead towards a peace deal to end the months-long conflict, while Remy Cointreau rose after the beverage maker announced a turnaround plan.
Crude prices eased about 1% to $96 a barrel after Israel and Lebanon reached an agreement to implement a ceasefire, raising hopes for a broader deal to end the U.S.-Israeli war on Iran.
Wary investors awaited clearer signs that a peace deal could be imminent this time after several rounds that have led nowhere.
The pan-European STOXX 600 index inched up 0.1% to 621.85 points by 0849 GMT, with retailers and luxury stocks leading gains, each with a more than 1% rise.
The benchmark is on track to end the week marginally lower as the Strait of Hormuz, a key global oil shipping route, remained mostly shut.
Rising price pressures have pushed investors to price in a 25 basis point interest rate hike by the European Central Bank when it meets next week, LSEG-compiled data showed.
“The well telegraphed policy hike coming next week reveals a preference for curbing upside inflationary risks rather than addressing downside growth risks,” said a group of macro analysts led by Rune Thyge Johansen at Danskebank.
“We expect (Christine) Lagarde to keep full optionality on the future policy rate path, including a potential second summer hike.”
Chip stocks eased, with Infineon Technologies and STMicroelectronics down 4.8% and 5.7%, respectively, after U.S. chipmaker Broadcom reported lower-than-expected second-quarter revenue.
European tech stocks have rallied the most on the STOXX index this quarter.
Markets kept an eye on the financial services sector, a day after signs of strain in private markets rattled stocks in Europe and the U.S.
Swiss asset manager Partners Group added 3.4%, steadying after a slump on Wednesday, when it said it expects a slowdown in fundraising in the second half of 2026 and into 2027.
British asset manager Premier Miton lost 6.7% after its first-half profit nearly halved from a year earlier.
Shares of Remy Cointreau rose 11.3% after CEO Franck Marilly laid out a turnaround plan and said the beverage maker aimed to boost operating profit by around €100 million ($116.1 million) by 2028/29.
While earnings for European firms have fared better than expected in the first quarter, according to LSEG-compiled data, corporates could face the heat in the face of a prolonged Middle East conflict.
Pirelli dipped 1.5% after U.S.-based short-seller Grizzly Research took a short position on it, though the Italian premium tyre maker denied the report.
Puma shares gained 5% after Citigroup raised its rating to “buy” from “neutral”.
(Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Harikrishnan Nair)
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