European Stocks Slip As Oil Rises And Metals Fall

European stocks edged lower as oil prices rose and metals retreated, underscoring how commodity swings are shaping sentiment after US-Iran talks were called off. The STOXX 600 finished down 0.2% as mining shares dropped 2.1% and travel and leisure names came under pressure from higher fuel costs for carriers and tours. Energy stocks rose, gaining about 1.3%, amid firmer crude, while investors reassessed Middle East supply risks. Morgan Stanley noted that the Strait of Hormuz's gradual reopening is partially reflected in European sector positioning and trimmed energy to equal weight from overweight, signaling cautious positioning amid mixed signals. Analysts said the mood split along commodity lines highlighted how energy and materials sectors are diverging from airlines and travel-related stocks. The pullback in miners came as base metals cooled, while investors weighed the potential for higher energy costs to squeeze discretionary travel spending. With the talks off, traders will monitor further Middle East developments and how quickly crude markets rebalance. The report points to a cautious tone for European equities, where sector-specific drivers may dominate market moves as geopolitics and commodity cycles intersect.