European stocks saw a decline due to concerns over potential rate cuts by the European Central Bank and ongoing geopolitical tensions in the US and the Middle East.

The Stoxx Europe 600 Index fell by 0.4% in early trading, with exporters, particularly car manufacturers, being impacted by trade wars.

In France, the CAC 40 index dropped by 1% due to a political standoff over the national budget, which affected major banking groups such as BNP Paribas SA, Societe Generale SA, and Credit Agricole SA.

This highlights the sensitivity of European equities to both domestic political developments and broader economic signals.