European stocks ended sharply lower as investors returned from the easter break:uropean Stoxx Europe 600 index falling 1.01% to close at 590.59 points.

According to Anadolu Agency, Germany's DAX 40 experienced a decline of 1.06%, reaching 22,921.59 points. Similarly, the UK's FTSE 100 dropped by 0.84% to 10,348.79 points. Meanwhile, Italy's FTSE MIB 30 saw a decrease of 0.49%, closing at 45,411.79, and France's CAC 40 fell by 0.67% to settle at 7,908.74. The euro/dollar pair rose by 0.23% to 1.1569 as of 1715GMT.

The markets opened their first session post-holiday in negative territory, with a focus on the Middle East. Investors are paying close attention to the potential escalation of conflict involving the US, Israel, and Iran, especially considering its implications for global energy supplies. President Trump mentioned the possibility of an attack if an agreement to reopen the Strait of Hormuz was not reached by the deadline, further intensifying market fears.

On the economic data front, the Eurozone's composite Purchasing Managers' Index indicated a decline to 50.7 in March, marking its lowest in nine months, and signaling only marginal growth in private-sector activity due to rising cost pressures. In the UK, the services PMI also showed a decrease to 50.5, marking the weakest reading in 11 months.

Investor sentiment across the euro area has taken a hit, with the Sentix Eurozone General Investor Confidence Index dropping by 16.1 points in April to minus 19.2, its lowest level since April 2025. This decline reflects renewed recession fears as the Middle East conflict and the related energy shock continue to impact the regional economic outlook.