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Persian Gulf Outlook, Crude Prices Undercut European Bourses Midday

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European bourses tracked moderately lower midday Wednesday as traders mulled media reports of fresh Persian Gulf hostilities and faltering Middle East ceasefire talks and noted rising crude prices.

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

Front-month North Sea Brent crude-oil futures were up 2.1% at $98.01 a barrel.

Investors also eyed muted Wall Street futures, but mostly higher closes overnight on Asian exchanges, as AI-related shares rose.

In economic news, the eurozone producer price index (PPI) rose 0.6% in April from March, and the broader European Union PPI gained 0.7%, reported Eurostat. On the year, the PPI in April was up 4.9% in both the eurozone and the EU. Higher energy prices were cited for the gains.

The pan-continental Stoxx Europe 600 Index was off 0.4% mid-session.

The Stoxx Europe 600 Technology Index was down 0.4%, and the Stoxx 600 Banks Index lost 0.5%.

The Stoxx Europe 600 Oil and Gas Index rose 1.3%, while the Stoxx 600 Europe Food and Beverage Index declined 0.2%.

The REITE, a European REIT index, fell 0.5%.

On the national market indexes, Germany's DAX was down 0.8%, and the FTSE 100 in London lost 0.3%. The CAC 40 in Paris was down 0.4%, but Spain's IBEX 35 lifted 0.2%.

Yields on benchmark 10-year German bonds were higher, near 3.02%.

The Euro Stoxx 50 volatility index was down 0.2% at 19.18, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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