European shares muted as investors weigh US-Iran talks

EUROPEAN shares were muted at the open on Monday (Jun 22) as investors assessed the latest round of US-Iran negotiations for signs of progress toward resuming shipping through the Strait of Hormuz, a critical artery for global oil trade.

Brent Crude prices declined 1.6 per cent, and were trading below US$80 per barrel after mediators Qatar and Pakistan said that Washington and Teheran had agreed on a roadmap for a final deal and measures to safeguard shipping through the Strait of Hormuz. Teheran had declared the waterway closed on Sunday, casting doubt on the ceasefire’s sustainability.

The pan-European Stoxx 600 index edged 0.05 per cent higher to 635.92 points by 0711 GMT. Tech stocks led sectoral gains, rising 1.2 per cent, with chipmaker Infineon and semiconductor equipment maker Aixtron gaining 4.5 per cent and 2.3 per cent, respectively, tracking advances in Asian equities.

In M&A activities, shares of budget airline easyJet rose 2.3 per cent after US investment firm Castlelake went public with a £4.74 billion (S$8.1 billion) offer.

Danone shares slipped 0.4 per cent after the French food giant said it will acquire Australian company Made Group for an undisclosed amount.

Among other movers, the UK’s defence and engineering group Babcock dropped 3.3 per cent following a sharp decline in its annual profit on a £140 million frigate charge. REUTERS