European stocks erased earlier declines following a report that the US has proposed a temporary waiver on Iran oil sanctions until the final agreement.
The Stoxx Europe 600 Index traded 0.04% higher as of 1:10 p.m. in London, having earlier fallen as much as 0.9%, as Iran’s semi-official Tasnim agency reported the US proposal citing a source close to the negotiation team. Brent crude held just under $109 a barrel, easing off the day’s highs.
Energy stocks were the day’s top-performing sector, with Shell Plc gaining 1% and BP Plc adding 1.3%. But the broader market is also getting some relief from a stabilization in bond markets. Yields on two-year and 10-year Treasuries traded steady to lower after a selloff that was caused by fears that higher oil prices will stoke inflation. German and UK 10-year yields slipped.
The Stoxx Europe 600 Index has underperformed US and Asian stocks since the Iran war started at the end of February, shedding about 5% since then. Oil has risen more than 50% in this period, with no real sign that the war will end soon, investors remain on edge.
“The supportive backdrop for risk stemming from ample liquidity, robust earnings, and resilient growth can come under pressure until there are clear signs of a path to conflict resolution, and a resumption of flows through the Strait of Hormuz,” said Laura Cooper, global investment strategist and head of macro credit at Nuveen.
Technology stocks outperformed Monday, supported by Technoprobe SpA‘s continued surge after last week’s blowout results. Ryanair Holdings Plc dropped 3% after the budget airline warned of rising costs this year if unhedged jet fuel prices remain at current levels.
Elsewhere, Sonova Holdings AG advanced 4.7% after the hearing-aid maker reported full-year profit that beat expectations due to strong growth across its wholesale and retail businesses.
With assistance from Julien Ponthus.
This article was generated from an automated news agency feed without modifications to text.
