European Markets Close Weak On Geopolitical Tensions, High Oil Prices

European Markets Close Weak on Geopolitical Tensions, High Oil Prices, as European stocks fell amid Middle East tensions and rising energy costs. Although the European Central Bank kept key interest rates unchanged on Thursday, investors pushed markets lower due to concerns about inflation and potential future rate hikes. Brent crude futures jumped to $101.22 a barrel, up more than 7%, while the pan-European Stoxx 600 fell 1.18%. National indices declined as well: the UK’s FTSE 100 closed down 0.73%, Germany’s DAX lost 1.56%, and France’s CAC 40 dropped 1.64%; Switzerland’s SMI fell 0.71%. The ECB said the outlook remains highly uncertain and that the full impact of the energy shock has not yet been felt. After the meeting, the deposit rate stood at 2.25%, the refinancing rate at 2.4%, and the marginal lending rate at 2.65%. ECB President Christine Lagarde’s comments leaned toward a possible September hike, though she said longer-term inflation expectations remain anchored. Some stocks rose, including Segro (+6.5%) and 3i Group (+4.8%).