European stocks closed weak on Monday amid concerns about rising oil prices and AI-related worries even as the UK market climbed higher, riding on gains in pharmaceuticals, energy and consumer sectors.
A sell-off in the tech sector following warnings of a potentially large-scale AI-driven cyberattacks hurt the markets. The postponement of talks between Iran and several Gulf nations, and caution ahead of key central bank meetings also contributed to the drop.
Oil prices rose sharply on supply concerns following Saudi Arabia suspending operations a crucial pipeline after recent drone attacks.
Brent Crude futures climbed to $109.80 a barrel before easing to $107.50 (still up sharply by about 2.75% over previous close).
Investors remained largely cautious, looking ahead to monetary policy meetings of central banks, including the Federal Reserve, the Bank of England and the Bank of Japan this week.
The pan-European Stoxx 600 dropped 0.4%. Germany’s DAX and France’s CAC 40 closed down by 0.81% and 0.86%, respectively, while the UK’s FTSE 100 moved up 0.44%. Switzerland’s SMI climbed 0.75%.
Among other markets in Europe, Austria, the Czech Republic, Finland, Greece, Iceland, Ireland, Poland, Portugal, Spain, Sweden and Türkiye ended notably lower.
Belgium, Denmark and Russia closed higher, while the Netherlands and Norway ended flat.
In the UK market, mining and bank stocks shed ground due to sustained selling pressure.
The Sage Group and Relx moved up 5.3% and 5.2%, respectively. Smith & Nephew, British American Tobacco, Coca-Cola HBC, Tesco and Unilever gained 3.2%-4%.
GSK moved up 4.8% after positive clinical data for its lung-cancer drug Jideytro. Despite a setback for Etcamah, a breast-cancer drug, shares of AstraZeneca gained nearly 4%.
LSEG, Unilever, Experian, Pearson, Imperial Brands, Haleon, Diageo, Coca-Cola Europacific Partners, Reckitt Benckiser, Sainsbury (J), Autotrader Group and BAE Systems also moved up sharply.
Halma, Antofagasta, Weir, Fresnillo, Barratt Redrow, Barclays, Polar Capital Technology Trust, Glencore, Centrica, IAG, IMI, Rio Tinto, National Grid, British Land, Endeavour Mining, Marks & Spencer, Natwest Group and Rolls-Royce Holdings lost 2%-5.6%.
In the German market, Hochtief, Siemens Energy, Infineon, MTU Aero Engines, RWE, Heidelberg Materials, Deutsche Bank, E.ON, Continental and Siemens declined sharply.
SAP climbed more than 5%. Fresenius Medical Care ended nearly 3% up. Bayer, Deutsche Börse, Siemens Healthineers, Beiersdorf, Scout24, Deutsche Post, Fresenius, Hannover RE, Munich RE, Zalando, Deutsche Telekom, Symrise, Henkel and BASF closed with notable gains.
