Oil prices headed for weekly gains as of Friday, despite the U.S. issuing a 30-day license for countries to buy Russian oil and petroleum products at sea.
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LONDON — European stocks fell in early trading as the ongoing unrest in the Middle East and elevated global oil prices continue to unsettle investors.
The pan-European Stoxx 600 dipped 0.4% shortly after 9:40 a.m. in London (5:40 a.m. ET), with most major bourses and sectors in the red.
While the U.K.’s FTSE 100 was last seen trading flat, Germany’s DAX was down 0.4%, and France’s CAC 40Â fell almost 0.6%. Italy’s FTSE MIB was more than 1% lower.
Oil and gas stocks led gains as the price of Brent crude remains elevated, while autos, utilities, and travel stocks led losses.
Commerzbank shares jumped 3.9% on the news that UniCredit has launched an offer to increase its stake in the German bank to above 30%, a key regulatory hurdle potentially paving the way for a full takeover bid.
The Italian lender’s offer is expected to be at a roughly 4% premium to Commerzbank shares. UniCredit shares were last seen trading down 1.9%.
The U.S. and Israel’s military operation against Iran remains the key focus for global markets. U.S. crude prices climbed Sunday evening, topping $100 per barrel again, as the White House weighed military strikes on Iran’s key oil export facilities on Kharg Island.
President Donald Trump said in an interview with the Financial Times published on Sunday that his planned trip to China later this month could be delayed as Washington seeks to pressure Beijing to help reopen the Strait of Hormuz.
Asia-Pacific markets fell overnight while U.S. stock futures rose slightly as Wall Street tried to recover from another losing week.
Central banks are in focus this week with the U.S. Federal Reserve, European Central Bank and Bank of England all holding policy meetings. However, the Middle East conflict has put a brake on any expectations for movement on interest rates.
No earnings or data releases are due in Europe on Monday.