European markets started the new week in negative territory, as investors reacted to the latest developments in the conflict between the United States and Iran and the potential implications for the global economy and energy markets.

More specifically, the pan-European Stoxx 600 index fell 0.76% to 602 points. Britain’s FTSE 100 slipped 0.12% to 10,182 points, Germany’s DAX declined 0.54% to 23,821 points, while France’s CAC 40 traded 1.05% lower at 7,867 points.

The energy sector once again stood out against the broader market downturn, gaining 0.7% in early trading as oil prices moved higher. Media stocks also posted modest gains of 0.3%, while all other European sectors remained in negative territory.

At the same time, concerns are mounting amid rising government bond yields and oil prices following new drone attacks in the Persian Gulf.

According to reports, a drone strike hit a nuclear facility in the United Arab Emirates, while Saudi Arabia announced it had intercepted three drones.

Against this backdrop, Brent crude futures, the international benchmark for oil prices, climbed 1.4% to reach $110.75 per barrel.

Bond markets are also facing pressure, as fears grow that another energy shock could reignite inflation, forcing central banks to keep interest rates elevated or even proceed with further hikes.

In Europe, yields on 10-year government bonds in Germany, France, Italy, and Spain moved higher. Globally, the yield on the US 10-year Treasury reached a 15-month high, while in Japan, bond yields rose to their highest levels since 1996.

Source: ot.gr