Precise Investors Editorial Team
Germany’s DAX edged 0.18% higher to 24,087.42, France’s CAC 40 added 0.57% to 8,280.09, while London’s FTSE 100 shed 0.47% to 10,559.58
European equities were mixed on Wednesday as investors traded cautiously amid escalating geopolitical tensions in the Middle East, while oil prices rose on developments in the Middle East.
As Chris Beauchamp, chief market analyst at IG, noted: After the surge in risk appetite last week investors continue to take a positive view of the situation.
After weeks of seeing strikes across the Middle East, the absence of further significant conflict remains a cause for celebration, especially since both sides appear willing to continue negotiating, he said.
The pan-European Stoxx 600 dropped 0.38% to 617.60.
Germany’s DAX edged 0.18% higher to 24,087.42 and France’s CAC 40 added 0.57% to 8,280.09, while London’s FTSE 100 shed 0.47% to 10,559.58.
Patrick Munnelly, market strategy partner at TickMill, noted: London equities were little changed on Wednesday, with weakness in financials and energy offsetting strength in healthcare, as investors stayed cautious amid continued uncertainty around the Middle East.
Oil prices moved higher, with Brent crude futures last up 0.98% on ICE at $95.72 per barrel, and the NYMEX quote for West Texas Intermediate ahead 1.58% at $92.72.
Everything still hinges on oil of course, Beauchamp said.
Brent, which was near $70 before the war escalated in late February, previously surged as high as $119 during the crisis.
European natural gas futures were also lower.
On the macroeconomic front, eurozone industrial production rebounded by 0.4% in February, ahead of expectations for a 0.3% rise, following declines of 0.8% in January and 0.6% in December.
Output remained 0.6% lower year-on-year.
Gains were driven by a 1.0% rise in capital goods, a 0.5% increase in intermediate goods and a 2.6% jump in non-durable consumer goods, offset by a 2.1% decline in energy production and a 1.3% drop in durable consumer goods.
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