Europe Edges Higher as Oil Prices Drop Amid US-Iran Tensions
European stock markets ticked up on Thursday as oil prices dropped, but investors remained cautious due to ongoing tensions between the US and Iran. The pan-European STOXX 600 index rose 0.2% to 660.49 points by 0714 GMT.
The FTSE 100 in Britain fell 0.3%, despite data showing a surprise expansion of the UK economy in June. This offered some reassurance about domestic growth, but overall sentiment remained subdued.
US inflation data came in line with expectations, easing concerns over renewed price pressures and potential Federal Reserve rate hikes. However, oil prices declined after forecasters cut their global demand outlook for this year due to the Middle East conflict.
The energy sector was little changed, while travel and leisure stocks gained 0.6% as lower oil prices improved fuel costs. The banking sector led gains, rising 0.9%. Maersk rose 8.3% after beating profit forecasts and raising its full-year earnings guidance for a second time this year.