Europe stocks flat as energy counters strength in industrials

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Investors remain on the look out for any developments in the Middle East after Iran launched retaliatory attack on Israel over the weekend

Traders working on the floor of the New York Stock Exchange. The Dow outpaced Wall Street peers on Monday, boosted by robust gains in Goldman Sachs. Photograph: Michael M Santiago/Getty Images

The pan-European Stoxx 600 ended 0.1 per cent higher. Industrials and automobiles rose 0.8 per cent and 0.7 per cent respectively after the Ifo economic institute said German manufacturers were no longer acutely affected by material shortages, with the supply situation almost back to how it was before the Covid-19 pandemic.

“The EU’s trade exposure to Iran is small.. but the continued escalation of geopolitical tensions will likely lead to more expensive supply chain protection and thus higher oil prices,” Citi analysts wrote.were both on the back foot as the sector mulled the prospect of interest rates in the US and other jurisdictions remaining higher for longer.Energy-related shocks have been a strong factor driving inflation in Europe and globally.

 

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