The European markets experienced a dip on Monday as the escalating conflict in the Middle East triggered inflation concerns ahead of the European Central Bank’s upcoming meeting. The STOXX 600 index saw a 0.30% decline to 639.6, with travel and leisure stocks suffering the most, dropping by 0.95%.
U.S. military strikes on Iran continued into their ninth day, raising shipping risks in the Strait of Hormuz after reports of immobilized tankers. Brent crude prices rose above $90 per barrel, though gains were pared later. Energy stocks lifted 0.98%, contrasting with tech stocks, which ticked up 0.13% as investors anticipate earnings from major U.S. tech firms.
As the week progresses, investors await the European Central Bank’s interest rate verdict, with expectations leaning towards a hold on current rates despite market projections of a 25-basis-point hike by year-end. The UK sees a shift in leadership with Andy Burnham becoming the new Prime Minister, tasked with confronting cost-of-living challenges amidst geopolitical strains and significant national debt.
(With inputs from agencies.)