European shares muted as higher oil prices counter bond recovery

Business Recorder reported, citing Reuters, that European shares were flat on Thursday, as concerns about rising oil costs and inflation balanced gains from a bond rebound that followed a US Treasury move. At 0708 GMT, the pan-European STOXX 600 was unchanged at 651.44 points.

Brent crude gained about 0.6 per cent to roughly $92 a barrel, and travel and leisure stocks slipped 0.4 per cent on fuel cost worries. Basic resources lost 0.7 per cent, the sharpest sector drop, as gold pulled back after earlier gains from softer bond yields and a weaker dollar. US President Donald Trump also cautioned that countries offering any support to Iran could face economic consequences, as Washington works to settle a conflict it entered with Israel almost six months ago.

The US Treasury stepped up purchases of long-dated debt after yields reached multi-year highs, while bond markets worldwide faced pressure this week. Germany's DAX lagged regional peers as its borrowing costs hit a 15-year high, as it faces higher defence spending needs.