European stocks were subdued on Monday as investors fretted about escalating tensions in the Middle East and rising Treasury yields.
Israel’s Ambassador to the UN, Gilad Erdan said his country “has no interest” in occupying Gaza but will do “whatever is needed” to eliminate the Palestinian Hamas militant group which controls the densely populated coastal enclave.
Meanwhile, European government bond yields rose today after ECB officials reiterated concerns about inflation.
On a light day on the economic front, data from Destatis showed Germany’s wholesale prices declined at the fastest pace in more than three years in September.
Wholesale prices posted an annual fall of 4.1 percent in September largely due to a base effect originating from the large price increases in 2022 as a result of the war in Ukraine.
Prices have been falling since April 2023. The latest fall was the biggest since May 2020.
The pan European STOXX 600 was marginally lower at 448.99 after falling 1 percent on Friday.
The German DAX and France’s CAC 40 both slipped around 0.1 percent, while the U.K.’s FTSE 100 rose 0.2 percent, led by miners.
Anglo American, Antofagasta and Glencore rose between 0.8 percent and 1.5 percent as base metal prices rose on optimism around demand from top consumer China.
Speaking over the weekend at the International Monetary Fund meeting in Morocco, People’s Bank of China Governor Pan Gongsheng said that authorities will provide more substantial support to the real economy.
Germany’s BioNTech fell almost 5 percent after saying it would likely take write-downs of up to 900 million euros ($947 million) in the third quarter.
Biopharma major GSK fell over 1 percent despite getting positive CHMP opinion for its Jemperli drug.
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