Oil Prices Fuel Inflation Worries as Eurozone Economy Shows Resilience

The European stock market remained relatively stable on Monday as rising oil prices and renewed U.S.-Iran tensions heightened inflation concerns. The pan-European STOXX 600 index closed at 649.9 points, with a slight drop of 0.8% for the DAX.

Heavyweight pharma company Bayer fell by 3.2% after its cholesterol drug failed in a closely watched study.

Germany's far-right Alternative for Germany (AfD) party topped a state election in Saxony-Anhalt with 44% of the vote, causing concerns about potential economic policies and their impact on the eurozone economy.

However, investors seem to be viewing this as a political warning rather than an immediate economic threat, according to Axel Rudolph, chief technical analyst at IG.