European shares steady; Middle East tensions in focus

EUROPEAN shares were steady at open as the developments in the Middle East stayed in focus, with oil prices easing after Iran and Israel halted attacks on US President Donald Trump’s appeal.

The pan-European Stoxx 600 index edged 0.1 per cent higher to 622.68 points by 0708 GMT.

Crude oil prices erased nearly all of the previous session’s gains after Iran and Israel halted attacks on each other, though investors remained cautious as diplomatic talks so far have failed to deliver a lasting peace and the Strait of Hormuz, a vital artery for global oil supplies, remains shut.

Inflation concerns have had markets price in a 25-basis-point interest rate hike by the European Central Bank at the meeting on Thursday, but the focus will be on the monetary policy path ahead.

Healthcare stocks declined the most among sectors, falling 0.8 per cent. GSK slipped 2 per cent after the British drugmaker agreed to acquire US-listed cancer drug developer Nuvalent for US$10.6 billion.

Tech stocks rose 0.9 per cent after global AI-related stocks, which had faced a selloff after a strong run, showed signs of steadying.

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UBS rose 1.5 per cent. A Reuters report said that Swiss lawmakers are considering a new pitch to soften capital requirements on the lender that could shave billions of dollars off the burden the bank is facing. REUTERS