View of the trading floor with display boards at the Frankfurt Stock Exchange. The stock markets react to the announced two-week ceasefire between Iran and the USA. (is associated with: «European markets close mixed amid Iran tensions, oil surge») Hannes P Albert/dpa
The major European markets closed mixed on Tuesday after a cautious session amid concerns about U.S.-Iran tensions and lingering uncertainty about the reopening of the Strait of Hormuz.
Investors assessed recent earnings updates and looked ahead to crucial U.S. inflation data due later in the week for clues about the Federal Reserve’s interest trajectory.
Brent Crude futures climbed above $90 a barrel amid fading hopes for a deal between Washington and Tehran to reopen the Strait of Hormuz, a critical waterway for global energy supplies. The price dropped to around $88.70 subsequently but still remained more than 1% up from previous close.
US President Donald Trump said he has instructed American representatives to firmly include compensation demands from Iran in any future negotiations, complicating efforts to reopen the crucial waterway.
The pan-European Stoxx 600 crept up 0.01%. The UK’s FTSE 100 ended down 0.17% and France’s CAC 40 closed lower by 0.13%, while Germany’s DAX climbed 0.26%. Switzerland’s SMI ended 0.4% down.
Among other markets in Europe, Austria, Denmark, Finland, Greece, the Netherlands, Norway, Poland, Portugal, Russia and Spain ended higher.
Belgium, the Czech Republic, Ireland, Sweden and Turkey closed weak, while Iceland ended flat.
In the UK market, St. James’s Place, Compass Group, Endeavour Mining, Entain, IG Group Holdings, BP, Shell, Persimmon and AutoTrader Group gained 1.5%-3.2%.
Games Workshop, Scottish Mortgage, Informa, Vodafone Group, Barratt Redrow, Lion Finance, ICG, Glencore, Kingfisher and National Grid also ended notably higher.
Spirax Group shed 5.6%. The thermal energy and fluid technology firm reiterated its guidance for mid-single-digit organic revenue growth and margin expansion for the full year after posting improved first-half results.
International Workplace Group shares ended down by 1.4% on weak results. The British office-space provider reported a loss before tax of $20 million, compared with a profit before tax of $12 million in the prior year.
M&G, Standard Life, Legal & General, Prudential, Coca-Cola HBC, 3i Group, JD Sports Fashion and Admiral Group lost 2%-3.4%. Sainsbury (J), GSK, Tesco, Hiscox, Diageo, Aviva and Imperial Brands were among the other notable losers.
In the German market, Siemens Energy climbed 2.5%. RWE, Deutsche Telekom, Scout24, BMW, Siemens, Continental, Gea Group and Siemens Healthineers moved up 1%-2%.
Qiagen, Adidas, Zalando, Merck, Daimler Truck Holding, Fresenius Medical Care and Brenntag closed notably lower.