Europe Stocks Slide on Oil Price Surge, Inflation Fears
European stock markets declined on Tuesday as rising oil prices sparked inflation concerns and renewed fears over energy supplies amid escalating tensions in the Middle East.
The pan-European STOXX 600 index fell by 0.2% to 648.41 points, while Germany's DAX dropped 0.3% and France's CAC 40 slipped 0.4%. London's FTSE 100 was relatively flat following a subdued session on Monday due to the U.S. public holiday.
The increase in oil prices, with Brent crude futures trading at around $98.50 per barrel, has reignited concerns that a prolonged conflict could intensify inflationary pressures and complicate interest-rate cut prospects for major central banks.
Novartis shares plummeted 8.8% after the company announced disappointing results from two late-stage trials of its experimental treatments, del-desiran and pelacarsen. The setbacks have raised concerns over Novartis' drug development pipeline and future growth prospects.