European shares flat as investors eye earnings; energy drags

EUROPEAN shares were subdued in early trading on Monday (Oct 26) as investors digested a slate of corporate earnings amid upheaval in France, while oil prices dipped on hopes of de-escalation in the Middle East conflict.

The pan-European Stoxx 600 index was flat at 636.26 points by 0809 GMT, after logging its steepest weekly loss since early September on Friday.

Oil prices fell after surging to near six-month highs last week, as hopes grew for a de-escalation in tensions between the United States and Iran. Top officials from Mecca Pact countries Saudi Arabia, Turkey and Pakistan are also set to meet Iran’s leaders in Teheran on Monday.

The broader energy sector was down 0.7 per cent.

Travel stocks were a bright spot, up roughly 1 per cent, helped by lower oil prices.

On the earnings front, Portugal’s Galp Energia reported a 68 per cent rise in third-quarter adjusted net profit on Monday, beating expectations. Shares of the company were down 8.5 per cent.

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Shares of technology services provider Computacenter gained 6.8 per cent after the company raised its annual profit guidance. REUTERS