LONDON / EuroWire / — European stocks closed lower on Monday as rising oil prices and renewed geopolitical tensions weighed on major regional markets, pulling the STOXX Europe 600 to its lowest level in more than a week. The pan European benchmark fell 0.8% to 621.24 after a volatile session, with declines across London, Frankfurt, Paris and Milan. The move reversed part of the gains recorded in late May, when European equities had recovered from earlier losses linked to the Middle East conflict.
The regional decline was broad, though not uniform. Germany’s DAX slipped 0.4%, France’s CAC 40 dropped 0.5% and the United Kingdom’s FTSE 100 lost 0.7%. The STOXX Europe 600 opened weaker and remained under pressure as crude prices advanced more than 6.5%, adding to the market focus on Europe’s exposure to imported energy. Energy costs have remained a central factor for European equities, inflation readings and central bank policy expectations.
Most sectors on the European benchmark ended in negative territory, while energy shares rose 1.7% as oil prices climbed. The sector gain contrasted with wider weakness across cyclicals and consumer linked stocks. Software shares helped limit the broader fall, supported by a sharp rise in SAP, which gained 8.1%. Other software names including Sage, Dassault Systemes, Nemetschek and Temenos also advanced, with several posting gains of about 7% to 8%.
Oil rise weighs on regional markets
Corporate developments remained an important part of Monday’s trading. easyJet shares climbed about 10% after Castlelake said it was considering a possible takeover bid for the British low cost airline. easyJet said the timing of the approach was highly opportunistic, citing market disruption linked to the conflict involving Iran. The company’s move stood out in a weaker travel and leisure backdrop, where higher oil prices can affect fuel costs and demand conditions.
Wise was among the largest decliners after its shares fell about 8%. The digital payments company came under pressure following confirmation that prosecutors in Brussels were examining suspicious transactions valued at about €500 million. Wise said it takes compliance obligations seriously. The case added to company specific pressure in a session already shaped by weaker regional risk appetite and a broad rotation away from several growth and financial technology names.
Inflation data stays in focus
The market decline came before updated euro area inflation figures due Tuesday, with price data remaining central to expectations for the European Central Bank. The ECB has kept inflation at the centre of policy discussions as energy prices, services costs and industrial input prices continue to influence the outlook. Separate data showed euro area unemployment at 6.3% in April, unchanged from March, while European Union unemployment held at 6.0%.
Monday’s close left the STOXX Europe 600 below the level reached in the previous week, when the benchmark had recovered all losses recorded since the start of the Middle East conflict. The latest session showed a split market, with gains in energy and software unable to offset losses across most other sectors. European markets remain closely tied to movements in oil, inflation data, corporate updates and policy signals from the European Central Bank.