European markets dip as traders monitor Iran war developments

European stocks were lower on Wednesday, as traders monitored intensifying operations in the Middle East.

The pan-European Stoxx 600 was last seen trading down around 0.7%, with major bourses and most sectors in negative territory.

The Dow ticked lower on Wednesday as investors weighed key consumer inflation data that shed further light on the health of its market and economy, while the S&P 500 was flat. Consumer prices rose 2.4% in the 12 months up to February, offering a final look at inflation pressures before an oil shock tied to the Iran war rattled the outlook.

Looking at individual stocks, German arms maker Rheinmetall reported full-year sales of 9.94 billion euros ($11.5 billion) and profits of 1.68 billion euros, saying it’s in “prime position to help the US replenish their missile stockpiles” used in the war with Iran.

The company said in a presentation that it’s expecting “higher spend for missile restocking and air defence,” which is “inevitable” in light of the war. Shares of Rheinmetall were 7.5% lower in afternoon dealmaking.

Luxury automaker Porsche said it plans to cut costs and expand its product range after a “challenging” 2025 that saw the German carmaker cut guidance four times.

“We will streamline our management structure, reduce hierarchies and cut back on bureaucracy,” Porsche CEO Michael Leiters said. Shares of the company were last seen about 0.6% lower, reversing earlier gains.