Source: Sharecast
The benchmark Stoxx 600 index was up 0.04% to 646 at 0734 GMT with most major bourses higher.
Switzerland's SMI fell 0.22% after data showed domestic inflation accelerated in August, snapping several months of cooling as renewed military action in the Middle East pushed global energy costs higher. Annual inflation rose to 0.8%, up from 0.4% in July, marking the highest reading since 2024, according to the Federal Statistical Office.
The FSO said the increase was driven by higher prices for petrol, diesel and heating oil, alongside rising housing rentals. Imported goods — including energy — saw a sharp uptick, underscoring the external pressures feeding into Switzerland’s inflation profile.
US stocks rebounded slightly after recent losses sent markets to a four-week low, with investors hunting for bargains despite another rise in oil prices, with sentiment boosted by some dovish comments from a Federal Reserve policymaker.
The Dow finished 0.6% higher, while the S&P 500 and Nasdaq both gained 0.5% – with the latter two snapping a three-day losing streak.
Rising oil prices, owing to the latest escalation of conflict between the US and Iran, have pushed up inflation expectations in recent days, leading to a big surge in government borrowing costs in recent days.
Investors remained on edge as tensions in the Middle East escalated, with the US and Iran exchanging their largest barrage of attacks since July.
Renewed hostilities revived fears of a broader regional conflict and kept markets cautious, particularly with energy prices already elevated.
Oil prices eased despite the geopolitical backdrop, with US West Texas Intermediate crude down 0.62% at $90.39 a barrel and Brent slipping 0.73% to $94.90.
Precious metals were higher as investors sought safe havens, sending spot gold up 1.28% to $4,425 an ounce and spot silver up 1.65% to $65.99.
Traders continued to ramp up expectations for another Federal Reserve rate hike, with markets now pricing in roughly a 62% chance of a 25‑basis‑point increase this month, up from 37% a week earlier. The shift reflects persistent inflation concerns and the recent rise in long‑term yields that has unsettled broader market sentiment.
Fed official John Williams said rising long‑term yields largely reflect a solid underlying economy, adding that he was still gathering information ahead of his next policy decision. Attention now turns to Friday’s nonfarm payrolls report, after ADP data showed weaker‑than‑expected job gains and kept investors cautious.
In equities news, shares in UK house builders fell after Crest Nicholson issued a profit warning on lower sales.
Reporting by Frank Prenesti for Sharecast.com
