European stocks closed lower on Thursday, dragged down by rising oil prices and stalled diplomatic efforts between the United States and Iran. The continent-wide Stoxx 600 index slipped 0.6 percent as bond yields held near multi-year highs and investors shunned high-risk assets.
Brent Crude Surpasses $100 as Middle East Tensions Persist
Crude prices climbed for the second session following a five-day slide.
Brent crude stabilized above $100 per barrel.
The European energy sector index rose 1.1 percent to record the largest gains among market sectors. The food and beverages sector gained 0.7 percent alongside a 0.2 percent increase for personal and household goods.
Markets reacted to signals from the United Nations General Assembly.
Data indicated that ongoing communications between Iranian officials and American envoys failed to yield meaningful progress toward ending the conflict.
German Bond Yields Hold Near 17-Year Highs on Inflation Fears
The yield on benchmark German 10-year government bonds held steady at 3.611 percent, hovering near a 17-year high reached the previous week.
Higher petroleum costs stoked immediate concerns over persistent inflationary pressures across the eurozone.
The bond market positioning reinforces investor expectations that the European Central Bank may feel compelled to maintain its tight monetary stance.
Technology and Industrial Shares Lead Market Retreat
Technology stocks led the decline among major groups with a 1.6 percent drop.
Industrial shares, which include defense manufacturing firms, slumped 1.4 percent.
Market participants awaited a scheduled summit between US President Donald Trump and Chinese President Xi Jinping.
They looked for signs of progress regarding trade truces alongside complex disputes involving Taiwan, artificial intelligence, and Iran policy.
