European shares inch up as lower crude offsets geopolitical unease
- The pan-European STOXX 600 was up 0.2% at 660.49 points
European shares edged higher on Thursday as oil prices fell, shifting focus to demand concerns, while US-Iran peace efforts remained stalled and disruption in the Strait of Hormuz persisted.
The pan-European STOXX 600 was up 0.2% at 660.49 points by 0714 GMT.
The benchmark STOXX 600 retreated from record highs in the previous session.
Britain’s FTSE 100 fell 0.3% even after data showed the UK economy unexpectedly expanded in June, offering some reassurance over the domestic growth outlook.
US inflation data came broadly in line with expectations, easing concerns over renewed price pressures and the prospect of further Federal Reserve rate hikes.
Still, sentiment in Europe remained subdued, with little progress in talks over the blockaded Strait of Hormuz and a US-Iran peace deal. On Thursday, oil prices declined after forecasters cut their outlook for global demand this year, citing the wider fallout from the Middle East war.
Europe’s energy sector was little changed.
Travel and leisure stocks gained 0.6% as lower oil prices improved the outlook for fuel costs.
Banking sector led the gains, rising 0.9%.
The European earnings season was entering its final stretch, with only a handful of companies left to report.
Maersk rose 8.3% after the Danish shipping group smashed profit forecasts and raised its full-year earnings guidance for a second time this year as the Middle East conflict and strong demand pushed freight rates higher.
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