Stoxx 600 Dragged Down by Oil, Energy and Utilities Support
European stocks moved lower on Tuesday morning, paring some of the previous session's gains, after oil prices rebounded above US$103 per barrel following renewed Iranian attacks on energy infrastructure in the Gulf region. The Stoxx Europe 600 Index fell 0.1% as of 8:24 a.m. London time, with utilities and energy leading the way, while technology and industrials lagged.
In individual stocks, UniCredit fell 1.3% after the German government rejected a €35 billion bid for Commerzbank. Pressure on European stocks continued throughout March as the Iran war and surging energy prices weighed on sentiment, after the benchmark index had previously posted eight consecutive months of gains driven by optimism about fiscal spending in the region.
Europe, which relies on oil and gas imports, is considered more vulnerable to energy shocks. Investors worry that rising prices will suppress growth and accelerate inflation, complicating the outlook for monetary policy. Mathias Heim, CIO of Bellecapital, believes the market is shifting from a quick reaction to the crisis to a more selective assessment of its next steps, after the spike in implied volatility in equities and oil eased from its peak.
Source: Newsmaker.id
