European stocks close mixed as pharmaceutical losses, rising oil prices weigh on concerns

Pan-European STOXX 600 edges down 0.05%, while UK's FTSE 100, Italy's FTSE MIB fall 0.1% each By Mucahithan Avcioglu ISTANBUL (AA) - European stock markets closed mixed Tuesday as rising oil prices fueled inflation concerns amid continuing tensions in the Middle East. The pan-European STOXX Europe 600 edged down 0.05% to 649.60. Germany's DAX was flat at 26,007.63, while the UK's FTSE 100 fell 0.1% to 10,811.66. Italy's FTSE MIB declined 0.1% to 52,177.47, and Spain's IBEX 35 lost 0.12% to 19,997.10. France's CAC 40 rose 0.14% to finish at 8,317.98. Oil prices advanced for a third consecutive session as Iranian officials threatened retaliation against additional US or allied attacks, including strikes on energy infrastructure in the Persian Gulf. Continuing disruptions around the Strait of Hormuz also fueled concerns about global energy supplies, keeping Brent crude above $90 per barrel. Higher energy costs raised concerns that inflation could remain elevated and corporate profit margins could come under pressure, particularly in energy-import-dependent European economies. Investors are also focused on the ECB Governing Council meeting Thursday. Money markets have largely priced in a 25-basis-point rate increase after annual eurozone inflation accelerated to 3.3% in August, with energy prices rising 14.3%. The yield on 10-year German government bonds remained near a multi-year high of 3.36%, adding pressure on equity valuations and increasing borrowing costs for companies. Markets are also awaiting US consumer inflation data later this week, which could influence expectations for the Federal Reserve's Sept. 15 - 16 monetary policy meeting. Among individual stocks, Swiss pharmaceutical company Novartis fell more than 10% after its experimental treatment for a muscle disorder failed to meet the primary endpoint in a late-stage clinical trial. Sandoz, meanwhile, gained after announcing a goal to more than double its revenue by 2035, supported by an expanded biosimilar portfolio and upcoming drug patent expirations. Kaynak: This news has been read 8 times in total