European stocks fall as Germany halves growth forecast, citing Iran war [CNBC]
DANONE S/ADR (DANOY)
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Source: CNBC
By 1:52 p.m. in London (8:52 a.m. ET), the pan-European Stoxx 600 was down by 0.2%, paring gains seen earlier in the session. Sectors and major regional bourses traded in broadly negative territory. German officials halved their economic growth forecasts for 2026, saying they now expected their domestic economy to grow by 0.5% this year. For 2027, the gross domestic product forecast was trimmed from 1.3% to 0.9%. Citing the conflict in the Middle East and the de facto closure of the Strait of Hormuz, Germany's Economics Ministry said the country had seen costs for households and businesses rise. Against this backdrop, officials projected that the inflation rate will be 2.7% this year and 2.8% next year. U.S. President Donald Trump on Tuesday extended the two-week U.S. ceasefire with Iran , saying the extension was warranted due to Tehran's government being “seriously fractured.” Trump said the ceasefire, which he earlier had said would end on Wednesday, would continue “until
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