Europe open: Stoxx down as Israeli escalation of conflict hits sentiment

3rd Oct 2024 08:35

(Sharecast News) - European shares were lower at the open on Thursday as Israel's continuing attacks on Lebanon, and fears of regional conflict escalation hit investor sentiment.

The pan-regional Stoxx 600 index was down 0.64% at 517 in early deals with most major bourses lower.

The pound weakened after Bank of England governor Andrew Bailey told the Guardian newspaper that the central bank could become a "bit more aggressive" in cutting interest rates as long as news on inflation continued to be good.

Oil prices held gains, with Brent crude above $75 amid supply worries should the Middle-East conflict spread.

Israel bombed the Lebanese capital of Beirut early on Thursday, killing at least six people, as in addition to its ground invasion of the country.

Investors were also keeping an eye out for eurozone services survey data for any clues on future interest rate policy by the European Central Bank.

In equity news, shares in SAP fell on a report said that US prosecutors are widening a probe on potential price-fixing by the German software developer.

Tesco shares rose after the UK supermarket chain lifted annual guidance on the back of strong interim results.

Reporting by Frank Prenesti for Sharecast.com