European shares dip as banks hit over 3-month low, oil prices weigh

EUROPEAN shares fell on Thursday (Oct 8) as banks slid to a more than three-month low, while a fresh bond selloff and elevated oil prices stoked fears that higher inflation could hurt economic growth.

The pan-European Stoxx 600 index was down 0.9 per cent to 624.24 points, as of 0723 GMT.

European banks dropped nearly 2 per cent, with Deutsche Bank, Banco Santander, Societe Generale and Unicredit all falling for a second day as euro zone bond yields climbed towards their recent peaks.

Oil prices climbed more than 3 per cent on persistent concerns about supply from the key Middle East producing region, while a hurricane threat to US offshore operations prompted production cuts.

Minutes from the Federal Reserve’s latest policy meeting showed officials were divided over the case for further rate hikes. Attention now turns to Europe, where markets will parse the European Central Bank’s latest meeting accounts for clues on the policy outlook.

Several ECB and Fed officials are scheduled to speak later in the day, alongside Bank of England Governor Andrew Bailey.

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Among individual stocks, Bavarian Nordic gained 2.9 per cent after the Denmark-based biotechnology firm raised its 2026 revenue guidance and EBITDA margin forecasts. REUTERS