Flat European Markets as Tensions with Iran Weigh Heavily
European stock markets held steady on Monday as investors kept a close eye on escalating tensions between the US and Iran, while also awaiting key economic data releases that could influence the European Central Bank's policy direction.
The pan-European STOXX 600 index closed flat at 654.21 points, weighed down by concerns over potential US sanctions against countries with trade ties to Iran.
Chris Beauchamp, chief market analyst at IG Group, warned that 'there are a lot of unknowns riding on this (sanctions) at the moment', and that the situation could be particularly bad for European markets if it leads to further escalation in the Strait of Hormuz.
In contrast, energy-intensive stocks such as travel and leisure rose 1.7% as Brent crude prices declined 1.9%, while media and personal household goods shares gained 1.4%.