European Stocks Edge Higher as Oil Prices Fall

European stock markets posted modest gains on Thursday as lower oil prices helped ease concerns over the economic impact of the conflict in the Middle East. The pan-European STOXX 600 index rose 0.2% to 660.57, recovering some of the ground lost after retreating from record highs in the previous session.

Investor sentiment remained cautious, however, as negotiations between the United States and Iran remained deadlocked and shipping through the Strait of Hormuz continued to face disruptions. Oil prices fell after weaker global demand forecasts offset concerns about supply.

Lower crude prices weighed on energy stocks, which fell 0.7%, while travel and leisure companies – which typically benefit from cheaper fuel – gained 0.6%. Banks advanced 1.2%, but losses in mining and other basic materials stocks dragged the sector down 2.9%.

Among individual companies, Danish shipping group Maersk climbed 4.6% after reporting better-than-expected earnings. Dutch payments company Adyen surged 12.2%, while Swiss online bank Swissquote dropped 10.7% after weaker cryptocurrency revenues disappointed investors.

(Reuters, bak)