European Stocks Fluctuate as Hezbollah Rejects Lebanon Ceasefire on June 5, 2026

European shares traded mixed on June 5, 2026, as Hezbollah’s rejection of a U.S.-brokered ceasefire in Lebanon elevated geopolitical uncertainty. The pan-European STOXX 600 hovered near flat, while Germany’s DAX edged 0.2% higher and France’s CAC 40 slipped 0.3%. Travel and leisure stocks fell sharply on fears of regional instability, with airline shares leading declines. Conversely, defense contractors rallied, with Rheinmetall and Saab gaining over 2% each, as investors priced in higher military spending. Oil prices rose 1.5%, with Brent crude topping $92 a barrel on supply disruption risks in the Middle East. The breakdown in diplomacy dashed hopes for de-escalation that had supported equities earlier in the week, shifting focus to mounting risks for European energy imports and export-sensitive sectors.