Stock Market: Milan recovers with Europe, oil prices fall

European stock markets have stabilized, recovering initial losses amid rumors of renewed negotiations to end the conflict in Iran. Analysts cite unconfirmed mediation efforts by Qatar and Pakistan as a reason for market optimism. The Stoxx Europe 600 index closed down 0.1%, with Milan and Frankfurt erasing losses, while Paris and London saw slight declines. Madrid turned positive, gaining 0.37%. Energy and banking sectors performed well in Milan, with Enel and Italgas leading gains. Conversely, Saipem fell significantly. Investors shifted away from AI-related stocks towards more defensive sectors, impacting the tech sector. Analysts are focusing on the earnings season for reassurance on corporate profits amid a challenging environment.