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European shares edge up as lower crude offsets the geopolitical uncertainty

European shares edged higher on Thursday, as oil prices dropped, shifting the focus to demand concerns. Meanwhile, U.S. - Iran peace efforts remain stalled, and disruptions in the Strait of Hormuz persist.

By 0714 GMT, the pan-European STOXX 600 index was up 0.2% to 660.49. The benchmark STOXX 600 fell from its record highs of the previous session.

Britain's FTSE 100 dropped?0.3% despite data showing that the UK economy expanded unexpectedly in June.

The U.S. data on inflation came in broadly line with expectations, which eased concerns about renewed price pressures as well as the prospect of more Federal Reserve rate increases.

Still, the mood in Europe was subdued. There were few signs of progress in the talks about the blocked Strait of Hormuz, and an agreement between Iran and America.

Oil prices fell on Thursday after forecasters lowered their expectations for global demand this year. They cited the larger fallout of the Middle East conflict.

The energy sector in Europe has remained largely unchanged.

Travel and leisure stocks rose 0.6%, as the outlook for fuel prices improved with lower oil prices.

The banking sector led the way with a 0.9% increase.

The European earnings season is?entering the final stretch with only a few companies remaining to report.

Maersk shares rose 8.3% as the Danish shipping company smashed its?profit expectations and increased?its full year earnings guidance for the?second time in this year, due to the Middle East conflict. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Mrigank Dhaniwala)

(source: Reuters)