European stocks steady as Middle East tensions weigh

European stocks held steady on Thursday, with the pan-European STOXX 600 up 0.1% at 622.17 by 0819 GMT as investors remained cautious over Middle East tensions and strains in private markets.

Oil prices fell about 1% after Israel and Lebanon agreed to implement a ceasefire. Traders noted earlier spikes in tensions between the United States and Iran this week that kept market participants guarded.

Trading activity was subdued while investors awaited clearer signs that regional hostilities would not widen. The geopolitical backdrop and concerns about fundraising and redemptions in private market investment vehicles limited aggressive positioning across equity markets.

Financial stocks stayed in focus after signs of strain in private markets rattled stocks in Europe and the United States on Wednesday. Market participants monitored flows and liquidity within open-ended funds and other private market structures.

Swiss asset manager Partners Group recovered about 1% after warning of an expected slowdown in fundraising in the second half of 2026 and into 2027, citing uncertainty around redemptions from its open-ended evergreen funds.

French spirits maker Remy Cointreau jumped roughly 9% after Chief Executive Franck Marilly unveiled a turnaround plan aiming to raise operating profit by about €100 million by the 2028/29 financial year.

Universal Music Group shares fell about 6.7% after the company announced a share repurchase from Pershing Square Funds and disclosed it had rejected an unsolicited takeover proposal from the investment group earlier in the week.

Corporate updates drove several of the larger individual stock moves while broader market direction remained tied to developments in the Middle East and conditions within the private markets sector.