Europe faces recession if the crisis around the Strait of Hormuz is not resolved within a month, according to Mark Dowding, director of bond investments at RBC BlueBay Asset Management. "I think it will become inevitable," Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-04-27/rbc-bluebay-s-dowding-sees-recession-risk-for-europe-on-iran-war">quoted the </a>financier as saying.

Europe faces recession if Strait of Hormuz crisis not resolved in a month - RBC

European stocks declined on Friday, April 24, amid uncertainty in the Middle East, losing their previous advantage over the U.S. stock market since the beginning of the year. Investors fear the impact of high oil prices on global economic growth, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-04-24/european-stock-returns-are-now-losing-against-the-us-this-year">writes</a>.

'US leadership returns': EU stocks lose ground to US yields

SAP SE

Europe's largest software vendor is now severely undervalued, Morningstar points out 

SAP shares have rebounded from the latest drop after a sell-off in the software sector. Should we buy them?

Visa Inc.

Mastercard Incorporated

Publicis Groupe S.A.

Capgemini SE

Since the beginning of this year, European officials and businessmen have been actively calling for the creation of their own alternatives to the American payment systems Visa and Mastercard. This topic is "fueled" by the cooling of relations between the US and the EU. To reduce dependence, the EU plans to launch its analog of international payment systems based on the digital euro. A representative of the ECB and an assistant to a MEP told Oninvest the details of this work.

The EU plans to launch a digital euro and its own payment system. What is in the way?  

Kering SA

LVMH Moet Hennessy - Louis Vuitton, Societe Europeenne

Moncler S.p.A.

Burberry Group plc

Brunello Cucinelli S.p.A.

Compagnie Financiere Richemont SA

Hermes International Societe en commandite par actions

Luxury can no longer be bought as a single investment basket - the war in the Middle East has returned it to the category of consumer discretionary, i.e. cyclical consumer sector. Dynamics are again determined not so much by the strength of brands as by tourist flows, currencies and consumer sentiment in the US and China. Alena Nikolaeva, an independent portfolio manager for global markets, wrote for Oninvest how to invest in luxury now that the sector is no longer unified and no longer gives a "quality premium" by default

Why you can't just "buy luxury" anymore: How to invest in luxury brand stocks after the war in the Middle East

The military conflict in the Middle East will leave scars on the global economy that will not heal for a long time. The IMF warns that its economic forecast is "drifting" towards a more unfavorable scenario. Investors are forced to revise their strategies once again.

The outlook for the global economy is deteriorating. Opinions of investors and analysts

European stock markets followed Asia-Pacific at the start of the week as investors react to US plans to block the Strait of Hormuz

Stocks in Europe fell as the U.S. prepares to blockade the Strait of Hormuz

US President Donald Trump <a href="https://www.bloomberg.com/news/articles/2026-04-09/trump-vows-troops-to-stay-with-iran-talks-set-amid-fragile-truce">has promised to</a> keep US troops in the Persian Gulf ahead of talks with Iran. The day before, both sides accused each other of violating the terms of the ceasefire, after which Iran again reported the suspension of shipping through the Strait of Hormuz. Markets, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-04-09/trump-vows-troops-to-stay-with-iran-talks-set-amid-fragile-truce">points out</a>, reflected this uncertainty: oil prices began to rise again, while stocks in Europe and Asia fell.

Stocks fall, oil at $98: Trump promises to keep U.S. troops in the Middle East

European stocks amid news of a <a href="https://oninvest.com/article/ssa-i-iran-soglasilis-na-dvuhnedel-noe-peremirie-cena-nefti-wti-ruhnula-na-16">two-week ceasefire</a> in the Middle East began trading on April 8 with significant growth, close to the maximum since 2022, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-04-08/european-stocks-set-for-biggest-rise-since-2022-on-iran-us-deal">writes</a>. Gas prices in Europe also <a href="https://www.bloomberg.com/news/articles/2026-04-08/european-gas-futures-tumble-on-us-iran-ceasefire-agreement">fell by</a> 20% at the moment, reaching the lowest level since the beginning of the war.

European stocks jumped nearly 4% on news of a truce with Iran

AirAsia X Berhad

Ryanair Holdings plc

Deutsche Lufthansa AG

United Airlines Holdings, Inc.

Malaysia's low-cost carrier has raised ticket prices by 40%. In April or May, the shortage of jet fuel already faced by carriers in Asia will spread to Europe, the International Energy Agency has warned

Following Asia, Europe expects a shortage of jet fuel: what will happen to transportation?

Drive and fly less, go to work without a tie, and better yet, work from home. This is the advice given by authorities in various countries, which have to reduce demand for energy resources due to the largest disruption in the history of their supply. In different countries of the world again recommend to switch to remote work, which reminds of emergency measures in the times of pandemic Covid-19. But now it's a response to the energy shock from the war in Iran.

How different countries around the world are trying to save energy resources 

Stoxx 600 loses ground despite recovery earlier in the week