ILLUSTRATION – The DAX benchmark index is visible in the trading floor of the Frankfurt Stock Exchange. (is associated with: «European markets fail to hold early gains, settle weak») Andreas Arnold/dpa
After trading in positive territory for much of the session, most European markets ended lower on Tuesday, hurt by brisk selling in the final hour.
Despite oil’s retreat, investors turned cautious amid continued uncertainty over whether Iran and the US would reach an agreement to end their conflict any time soon. Technology stocks fared well amid hopes that investment in AI would support long-term demand for chips.
Brent crude front-month futures rose to $107.87 a barrel earlier in the day but later dropped to around $103 a barrel.
The pan-European Stoxx 600 fell 0.09%. The UK’s FTSE 100 dropped 0.45% and France’s CAC 40 fell 0.53%, while Germany’s DAX rose 0.1%. Switzerland’s SMI fell 0.22%.
Among other European markets, Austria, Belgium, the Czech Republic, Finland, Norway, Poland, Portugal, Spain and Turkey closed with sharp to moderate losses. Denmark edged down marginally.
Iceland, Ireland, the Netherlands, Russia and Sweden ended higher, while Greece closed flat.
In the UK market, Weir gained nearly 3%. Convatec Group, Metlen Energy & Metals, InterContinental Hotels Group, Halma, Polar Capital Technology Trust, Diploma, Airtel Africa, Coca-Cola HBC, IG Group Holdings, Babcock International, Scottish Mortgage, JD Sports Fashion, Marks & Spencer and Whitbread gained between 1% and 2.3%.
Energy stocks Ithaca, BP and Shell ended down by 3.7%, 2.3% and 1.7%, respectively, as oil prices weakened.
Sainsbury, British American Tobacco, Rentokil Initial, Experian, Howden Joinery Group, Tesco, Lion Finance, Barratt Redrow and Bunzl lost between 1.3% and 2%.
Admiral Group, Vodafone Group, Unilever, Kingfisher, Endeavour Mining and BAE Systems also closed notably lower.
In the German market, Infineon, a German chipmaker, and Siemens Energy rose by about 4.8% and 3.5%. Vonovia climbed more than 2%. Siemens, Heidelberg Materials, MTU Aero Engines and SAP also closed notably higher.
Fresenius fell nearly 5%. Bayer shed 3.7%. Fresenius Medical Care ended lower by about 3.1% after Berenberg sharply cut its price target for the stock and withdrew its buy recommendation.
Daimler Truck Holding, Mercedes-Benz, E.ON, Adidas, Beiersdorf, Munich Re, BMW, Hannover Re, Deutsche Telekom and Commerzbank also closed weak.
In the French market, Legrand, a French electrical equipment maker, surged more than 6% after raising its 2030 targets, citing accelerated growth in data centres and the energy transition alongside improved profitability.
STMicroelectronics climbed 2.3%. Pernod Ricard and Schneider Electric also gained more than 2%, while Bureau Veritas ended 1.9% higher.
Stellantis, Eurofins Scientific, ArcelorMittal, Vinci, TotalEnergies, Hermès International, Dassault Systèmes and Kering ended lower by 2%-3.5%.
Orange, Carrefour, Airbus, Danone, Société Générale, Unibail Rodamco, AXA, L’Oréal, LVMH, Renault and EssilorLuxottica shed 1%-1.6%.
In economic news, a report from the British Retail Consortium said UK shop prices grew at a slightly slower pace in September due to promotions and strong discounting.
Shop price inflation edged down to 1.4% in September from 1.5% in August. Nonetheless, the rate remained above the three-month average of 1.3%.