By Pranav Kashyap and Avinash P
March 4 (Reuters) – Spanish stocks slid on Wednesday after fresh trade-embargo threats from the White House, while other regional benchmarks inched higher, after a bruising global sell-off that dragged stocks to more-than-one-month lows amid fears the Middle East conflict could widen.
The pan-European STOXX 600 was up 0.6% at 607.92 points by 0939 GMT, following two sessions that wiped more than 4% off the index since hitting a record high on Friday.
Technology, Travel and Luxury sectors, the epicentre of the sell-off, rose 1.4%, 1.2% and 0.4%, respectively, with Tech and Healthcare providing the biggest lift to the benchmark.
Europe’s fear gauge, the STOXX volatility index, eased 2.3 points after gaining for four consecutive sessions.
Regional bourses also tried to bounce off multi-week lows, but Spain slipped. The IBEX 30 fell as much as 1% after U.S. President Donald Trump threatened to impose a trade embargo on the country, following Madrid’s refusal to allow the U.S. military to use its bases for missions linked to strikes on Iran.
The broader banking index extended its decline into a third consecutive session.
“It’s not often that you get an obvious catalyst for the move, but you wouldn’t get much argument on the fact that Trump’s peeved comment about Spain last night is the reason why they’re taking it on the chin,” said Chris Beauchamp, chief market analyst at IG Group.
Meanwhile, Vistry slumped 17.8% after the UK home builder announced its CEO and Chair, Greg Fitzgerald, intends to step down and the roles will be separated after his retirement.
OIL CLIMBS HIGHER; JITTERS PERSIST
Israeli and U.S. forces continued pounding targets across Iran that started from Saturday, prompting retaliatory strikes from Tehran across U.S. allies in the Gulf region, which have hit establishments ranging from oil refineries to U.S. embassies.
Oil prices have jumped more than 13% this week, and Europe’s reliance on energy and goods shipped through the Strait of Hormuz left it exposed as the route was choked.
Alternative routes would likely mean longer journeys and higher cost pressures that can quickly filter through to everything from transport to consumer prices.
Still, the oil sector declined for the second consecutive session, down 0.6%.
Markets are also contending with a mixed economic picture. PMI readings showed euro zone services activity expanding slightly faster in February, Germany’s growth hit a four-month high, France remained stuck in contraction, and Italy’s growth cooled.
Among other stocks, Adidas shed 7.4% following its earnings results.
ASM International climbed 5.1% after the world’s second largest chip equipment maker said it expects first-quarter 2026 revenue to rise to about 830 million euros.
(Reporting by Avinash P in Bengaluru; Editing by Rashmi Aich and Krishna Chandra Eluri)
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