Oil Prices Weigh on European Stocks as ECB Rate Hike Looms

European stocks closed flat on Monday as rising oil prices fueled inflation concerns, offsetting stronger-than-expected euro zone economic data. The STOXX 600 index ended at 649.9 points, while Germany's DAX fell 0.2%. Switzerland's main index dropped 0.8%.

Novartis shares plummeted 3.2% after its cholesterol drug failed in a closely watched study. Meanwhile, energy stocks gained 1.2%, tracking higher oil prices. Brent crude futures hovered near six-week highs at $100 a barrel due to fears of supply disruptions following strikes on vessels in the Strait of Hormuz.

Data showed euro zone investor morale rose to its strongest reading in more than four years in September, while second-quarter GDP expanded 0.6% from the previous quarter and 1.2% year on year, both above expectations.