TLDR
- The STOXX 600 was near flat on Monday, up just 0.03%, as markets stayed cautious
- U.S. threats of major Iran sanctions kept risk appetite low and pushed oil prices higher
- Gold prices rose on a weaker dollar, lifting basic resources stocks
- Nvidia earnings on Wednesday are putting the tech sector on edge across Europe
- The ECB is expected to raise rates by 25 basis points in September after its June hike
European stock markets barely moved on Monday as traders balanced rising gold prices against uncertainty over U.S. sanctions on Iran. The pan-European STOXX 600 index edged up just 0.03% to 654.38 points in early trading.
The STOXX 50 slipped 0.2% to 6,450, showing the cautious mood more clearly. Investors were not willing to take on much risk with several major events coming later in the week.
The U.S. has threatened what it described as “the greatest financial offensive ever marshalled” against Iran. The sanctions are aimed at Iran’s trade partners, adding pressure across global markets.
Iran responded by warning it could shut down all oil exports from the Gulf if the economic pressure continued. That threat kept energy markets on edge.
Oil and Energy Stocks Fall
Brent crude was trading at around $93 a barrel, pulling energy shares down 0.6%. The threat of supply disruption from Iran was already being priced into markets.
Travel and leisure stocks bucked the trend, rising 1%. Lower oil prices were seen as a positive for that sector.
Basic resources stocks gained 0.7% as gold climbed on a weaker dollar. Gold spot prices were up 0.83%, trading near $4,642.
Automobile and parts stocks fell 0.5% despite data showing European electric vehicle sales picked up in July.
Nvidia and the Fed in Focus
The tech sector was under pressure ahead of Nvidia’s quarterly results due Wednesday. Investors are worried the chipmaker may struggle to meet the very high expectations already built into its share price.
Nvidia shares were down 0.98% in pre-market trading. Any disappointment in the results could ripple across European tech stocks.
Fed Chair Kevin Warsh is due to speak at Jackson Hole in Wyoming on Friday. Markets are watching closely for any signals on the U.S. interest rate path.
Jefferies analyst Mohit Kumar said Warsh is likely to stress the Fed’s readiness to act on inflation. Warsh has previously opposed expanding the Fed’s balance sheet.
Money markets are now pricing in the ECB’s deposit rate reaching close to 3% by late 2027. That follows a rate hike in June after an energy shock linked to the U.S.-Iran conflict.
The ECB is widely expected to raise rates by another 25 basis points at its September meeting.
In corporate news, Shell edged down 0.1% after reports that Exxon Mobil and other potential buyers have shown interest in Shell’s U.S. chemical assets.
Investors are also waiting for U.S. Treasury Secretary Scott Bessent’s press conference for more details on the Iran sanctions plan.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
