European equity indices gave up early gains and closed slightly lower on Monday, weighed down by an escalation in geopolitical rhetoric from Washington and the near-halt of tanker traffic through the Strait of Hormuz, even as investors continued to expect monetary easing in the United States. With earnings season fading, attention has shifted to economic and geopolitical developments for the market’s next cue.
Indices and sectors
The pan-European Stoxx 600 fell 0.12 percent to 657.07 points. Britain’s FTSE lost 0.28 percent to 10,720.30, Germany’s DAX slipped 0.27 percent to 26,369.66, and France’s CAC 40 dropped 0.66 percent to 8,579.60.
Miners and technology led the gainers, each rising more than 1 percent. Basic resources added 1.4 percent, with Antofagasta, Hochschild and Glencore up between 2.2 and 2.7 percent, while technology rose 1.1 percent. Energy edged up 0.3 percent as oil prices climbed. Food and beverages was the weakest sector, down 0.9 percent.
Hormuz dominates the session
The 60-day deadline set by the ceasefire agreement between the United States and Iran expired on Monday without a breakthrough. President Donald Trump warned of a devastating attack on Oman if it stood in the way of American objectives in the Gulf, following Omani-Iranian discussions on managing the strait. He said his first objective was to ensure Iran does not obtain a nuclear weapon, predicted that the Strait of Hormuz would be declared American territory, described Iran as very evil and warned that fuel prices would keep rising. Tehran, for its part, called on Washington to acknowledge defeat.
About a fifth of global oil and gas supplies passed through the strait before the war. Shipping through it is now close to fully paralysed.
Maersk tops the gainers
Shares in Danish shipping group Maersk rose 4.3 percent to their highest level since August 2022, after results beat expectations, freight rates rose and global demand held up despite the tensions.
This story was produced in the newsroom from the disclosed sources named above.
