Navigating Market Volatility: European Stocks Dip Amid Middle East Tensions and Rising Oil Prices
2 months ago

European bourses tracked moderately lower midday Thursday as traders weighed Middle East tensions and rising oil prices. Tech and property stocks led decliners, while oil shares held firm. Investors also eyed Wall Street futures signaling red and uneven closes overnight on Asian exchanges, although Tokyo rose 2% after Japan's new prime minister made dovish comments regarding monetary policy. The European Union producer price index (PPI) rose 0.6% in August from July in the euro area and by 0.4% in the broader European Union, Eurostat reported.

Year over year, the August PPI fell by 2.3% in the euro area and by 2.1% in the EU. The pan-continental Stoxx Europe 600 Index was off 0.5% mid-session. The Stoxx Europe 600 Technology Index was 1.1% lower, and the Stoxx 600 Banks Index declined 0.3%. The Stoxx Europe 600 Oil and Gas Index was steady, while the Stoxx 600 Europe Food and Beverage Index declined 0.5%.

The REITE, a European REIT index, fell 0.6%, and the Stoxx Europe 600 Retail Index declined 0.2%. On the national market indexes, Germany's DAX was down 0.4%, and the resource-heavy FTSE 100 in London was up 0.5%. The CAC 40 in Paris was off 0.7%, and Spain's IBEX 35 gained 0.3%. Yields on benchmark 10-year German bonds were higher, near 2.15%.

Front-month North Sea Brent crude-oil futures were up 2.1% at $75.48 per barrel. The Euro Stoxx 50 volatility index was up 2.4% at 20.37, indicating marginally above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges..

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