Europe open: Shares lower on MEast tensions, weak German factory orders

7th Oct 2024 08:05

(Sharecast News) - European shares opened lower on Monday as investors eyed the impact of the latest round of tit-for-tat attacks in the Middle East between Israel and most of its neighbours.

The pan-regional Stoxx 600 index was down 0.16% at 517.74 in early deals with most major bourses lower. US stock futures indicated a weaker start despite a rally on Friday after a stronger-than-expected jobs report last Friday.

Israel continued its relentless assault on Lebanon and Gaza, bombing the southern suburbs of Beirut while rockets fired by the Hezbollah militia hit Haifa, Israel's third-largest city, causing damage to buildings, police said.

Israeli media also reported five people were wounded in rocket attacks in Haifa and the city of Tiberias.

In economic news, factory orders in Germany fell more sharply than expected in August, dropping by their steepest level in seven months, amid an ongoing industrial downturn in Europe's largest economy.

New orders in manufacturing were down 5.8% during the month, following an upwardly revised 3.9% gain in July (original estimate: +2.9%), according to data released on Monday by the Deutsche Bundesbank.

This was the first decline in three months and the steepest monthly decrease since January, when orders plunged by 10.9%.

Compared with last year August, orders were down 3.9% after a 4.6% annual increase the month before.

The price of Brent crude rose 0.46% to $78.41 a barrel.

In corporate news, BP reportedly abandoned a target to cut oil and gas output by 2030 as its scales back its energy transition strategy. Share in the firm were higher.

Meanwhile sector rival Shell said third quarter refining margins had dropped sharply, although the shares held gains on a stronger oil price.

Cartier owner Richemont rose as it agreed to sell its Yoox Net-A-Porter online fashion and accessories business.

Reporting by Frank Prenesti for Sharecast.com