FINWIRES · TerminalLIVE
FINWIRES

Persian Gulf, Oil Outlooks Damp European Bourses Midday

By

-- European bourses tracked moderately lower midday Monday and oil prices again edged higher after unverified reports from Iranian news services claimed two missiles struck a US warship in the Strait of Hormuz.

Petroleum stocks led gains on continental trading floors while bank, food and property shares lagged.

Front-month North Sea Brent crude-oil futures were up 3.5%, at $111.91 a barrel in midday trades.

Investors also eyed muted Wall Street futures amid higher closes overnight on Asian exchanges, led by a 4.6% gain on Taiwan's TWSE Index, while Seoul's KOSPI Index rose 5.1%.

In economic news, the Eurozone manufacturing purchasing managers index logged at 52.2 in April, up from 51.6 in March, surpassing the 50-mark that separates growth from contraction, S&P Global reported.

The pan-continental Stoxx Europe 600 Index was off 0.5% mid-session.

The Stoxx Europe 600 Technology Index was down 0.2%, and the Stoxx 600 Banks Index lost 1.2%.

The Stoxx Europe 600 Oil and Gas Index gained 0.2%, while the Stoxx 600 Europe Food and Beverage Index declined 0.7%.

The REITE, a European REIT index, fell 0.7%.

On the national market indexes, Germany's DAX was steady, and the FTSE 100 in London lost 0.1%. The CAC 40 in Paris was down 1%, and Spain's IBEX 35 eased 1.5%.

Yields on benchmark 10-year German bonds were higher, near 3.07%.

The Euro Stoxx 50 volatility index was up 4.8% at 23.71, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

Related Articles

Equities

B. Riley Raises Price Target on NPK International to $21 From $19, Keeps Buy Rating

$NPKI
Sectors

Sector Update: Consumer Stocks Lean Lower Pre-Bell Monday

Consumer stocks were leaning lower pre-bell Monday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) declining by 0.1%.GameStop (GME) said it submitted a non-binding proposal to acquire all outstanding shares of eBay (EBAY) for $125 each. Shares of eBay were up more than 6% and GameStop stock was down more than 5% premarket.Tyson Foods (TSN) shares were up more than 1% after the company reported fiscal Q2 adjusted net income and sales that topped analysts' estimates.Norwegian Cruise Line (NCLH) stock was down more than 6% after the company issued Q2 adjusted earnings outlook below analysts' expectations and cut its 2026 adjusted EPS guidance.

$EBAY$GME$NCLH$TSN$XLP$XLY
Oil & Energy

EMEA Oil Update: Crude Climbs as Traders Assess Project Freedom

Crude oil futures rose on Monday as traders showed skepticism that the US Project Freedom initiative can restore normal trade through the Strait of Hormuz.Front-month Murban crude futures rose 1.7% to $105.49 per barrel, while Brent futures were up by 2.2% to $110.59/bbl."The market is steadier at the start of the new trading week, despite continued noise around developments in the Persian Gulf," ING said.Sentiment was briefly shaken by the announcement of 'Project Freedom', a US plan to guide commercial ships out of the Strait of Hormuz.However, initial sell-offs were quickly reversed as the market looked unconvinced by the plan's scope.Analysts note that without active US Navy escorts for inbound vessels, the move likely only provides temporary relief by clearing out existing floating storage rather than restoring normal trade flows.Supply concerns are further exacerbated by a lack of progress in diplomatic channels and shifts within OPEC+.Although the group announced a 188,000 b/d supply increase for June, its first meeting since the UAE's surprise exit, market experts doubt the full volume will reach the market.Over half of the scheduled increase is tied to Persian Gulf producers currently restricted by the Strait of Hormuz blockade.With President Trump reportedly labeling Iran's latest peace proposal "unacceptable" and Tehran refusing to discuss nuclear terms until port blockades are lifted, crude prices continue to hold a significant risk premium.