European Stocks Ticker Higher on Falling Oil Prices and Weaker Demand
European stocks rose modestly on Thursday as falling oil prices provided some relief to investors, despite ongoing tensions in the Middle East. The pan-European STOXX 600 index gained 0.2% to 660.49 points by 0714 GMT.
The previous session's record highs were briefly eclipsed, but gains remained limited as markets assessed the economic impact of the conflict. Britain's FTSE 100 slipped 0.3%, despite data showing that the UK economy expanded in June, which provided some reassurance about domestic growth.
US inflation data came in line with expectations, easing concerns about a renewed acceleration in price pressures and reducing fears of further Federal Reserve rate hikes. However, European investors remained cautious amid limited progress on efforts to reopen the Strait of Hormuz and advance a US-Iran peace agreement.
The energy sector was little changed, while travel and leisure stocks gained 0.6% as lower oil prices improved their outlook for fuel costs. Banks were among the strongest performers, with the sector rising 0.9%. Shipping group Maersk surged 8.3% after beating profit expectations by a wide margin and raising its full-year earnings guidance.