(Il Sole 24 Ore Radiocor) - Milano, 29 apr - European shares closed lower as markets braced for upcoming policy decisions from the Federal Reserve and the ECB, with both banks expected to hold interest rates steady.

Risk appetite remained subdued following reports that US president Donald Trump has directed that preparations be made for an extended blockade of Iran, heightening concerns over shipping disruptions through the Strait of Hormuz.

The move comes as investors weigh the potential for a prolonged US-Iran conflict against news that the United Arab Emirates plans to exit OPEC. Markets remain sensitive to inflation risks linked to oil prices, with the Federal Reserve scheduled to announce its monetary policy decision later today, followed by the ECB tomorrow.

On the data front, the Economic Sentiment Indicator for the eurozone fell 3.2 points to 93.0 in April, while the Employment Expectations Indicator plummeted 4.6 points to 91.7, according to the European Commission. Both indicators are now markedly below their long-term averages.

Additionally, the annual growth rate of the eurozone's M3 monetary aggregate increased to 3.2% in March from 3.0% in February.

In Italy, consumer confidence fell to 90.8 in April from 92.6 in March, while business confidence also declined to 95.2.

The London FTSE 100 closed down 1.20% at 10,208.87 points, the Frankfurt DAX fell 0.39% at 23,946.50 points, the Paris CAC 40 shed 0.39% at 8,072.13 points, while in Milan the FTSE MIB lost 0.51% at 47,796.03 points, and in Madrid the IBEX 35.

closed 0.75% lower at 17,641.03 points.

(RADIOCOR) 29-04-26 17:58:28 (0660) 5 NNNN