European shares inch up as lower crude offsets geopolitical unease

Business Recorder reported that European equities nudged upward on Thursday as crude prices slid. The pan-European STOXX 600 gained 0.2% to 660.49 points by 0714 GMT, after pulling back from record levels in the previous session. Attention turned to weaker demand forecasts, while US-Iran peace efforts stayed stalled and the Strait of Hormuz remained disrupted.

UK data showed an unexpected expansion in June, yet the FTSE 100 slipped 0.3%. US inflation figures matched broadly what had been anticipated, easing fears of renewed price pressure and further Federal Reserve rate increases. Overall sentiment stayed subdued, with little headway in talks over the blockaded waterway and a US-Iran peace deal.

Europe's energy sector was broadly flat, while travel and leisure shares rose 0.6% as cheaper oil brightened the fuel cost picture. Banks led the advance with a 0.9% gain. Shipping group Maersk jumped 8.3% after posting profits well above forecasts and raising its earnings guidance again, as conflict in the Middle East and robust demand lifted freight rates. Earnings reporting is nearly complete across Europe, with just a few firms yet to publish results.