FRANKFURT: European shares started the week on a subdued note as investors braced for a packed scheduleof central bank meetings, and worries over stalled US-Iran peace talks pushed up crude prices, curbing risk-appetite.
With technology-led moves aiding US stocks to all-time highs, energy-dependent Europe has lagged with several companies flagging the impact of the Iran war on earnings.
“Every week it (war) drags on, every week it makes it worse for Europe … So markets are certainly pricing that in, and that’s why we’ve seen US stocks outperform their European rivals”, Kathleen Brooks, research director at XTB, said.
The pan-European STOXX 600 closed 0.3 percent lower at 608.84 points. The index snapped a four-week streak of gains last week, ending 2.5 percent lower.
Major regional bourses mirrored losses with Britain’s FTSE 100 declining 0.6 percent and Germany’s DAX falling 0.2 percent. Both indexes posted their sixth straight session in the red.
Technology and consumer staples shares were the biggest drags on the European STOXX 600, down 1.3 percent and 0.5 percent, respectively, on Monday.
Britain’s Intertek dropped 2.2 percent after the product-testing firm rejected a revised takeover bid of 54 pounds per share from Swedish private equity group EQT AB on Friday.
The oil and gas index reversed earlier gains and edged 1.1 percent lower.
With oil prices pinned at above USD100 a barrel, markets will pay close attention to policy meetings at the European Central Bank and the Bank of England this week for any signs they could hike rates to curb price pressures.
German consumer sentiment was at a three-year low, weighed by higher energy prices and rising inflation, a survey showed.
Among other movers, Nordex shares advanced 5.7 percent after the German onshore wind turbine maker posted core earnings and sales above expectations.
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