Oil Price Surge Fuels Inflation Worries Despite Strong Euro Zone Data

European shares closed flat on Monday (Sep 7) as rising oil prices following renewed US-Iran tensions fueled inflation worries, offsetting stronger-than-expected euro zone economic data.

The pan-European Stoxx 600 ended at 649.9 points, while the Swiss main index dropped 0.8 percent. Novartis fell 3.2 percent after its cholesterol drug failed in a closely watched study.

Germany's DAX fell 0.2 percent. The country's far-right AfD topped a state election in Saxony-Anhalt with 44 percent of the vote, dealing a major blow to Chancellor Friedrich Merz.

The party advocates tougher immigration curbs, closer ties with Russia, reduced support for Ukraine, and a withdrawal from the euro.