European Shares Slide on Inflation Fears as Oil Prices Soar
European shares slipped on Thursday as concerns over inflation persisted due to elevated oil prices. The pan-European STOXX 600 index closed 0.12% lower at 650.35 points, marking its seventh consecutive losing session since September 2023.
The prolonged Middle East conflict and US-Iran talks have kept energy supplies uncertain, pushing oil prices above $90 a barrel in recent days. This has rekindled inflation fears among investors, according to Ipek Ozkardeskaya, senior analyst at Swissquote, who stated that 'price pressures could move higher in the coming readings'.
Energy companies saw a 0.9% rise as Brent crude rose 2.2%, but travel and leisure stocks declined by 0.7%. Markets showed relief that euro zone bond yields steadied on Thursday after the US Treasury's intervention to boost liquidity support for long-term debt.